Maharashtra, UP, Karnataka, Tamil Nadu lead in imports
₹44,126 crore, followed by Uttar Pradesh (Rs. 41,381 crore), Karnataka ( ₹31,922 crore) and Tamil Nadu ( ₹22,340 crore). Gujarat collected ₹20,298 crore.
The top five states accounted for a third of all IGST collections in the April-February period of FY24. Maharashtra, Uttar Pradesh, Karnataka, Tamil Nadu and Gujarat also topped in terms of the total state GST collections in FY24. “Economic strength and population influence the extent of tax collections in the GST regime as it is a destination-based tax on consumption.
When goods are imported from outside the country, IGST is initially paid in the importing state and if goods are further supplied to the end consumer in another state, credit for the IGST already paid is used to meet the tax liability on that inter-state supply. Ultimately, the tax proceeds go to the state where the consumption happens," explained Abhishek Jain, indirect tax head & partner at KPMG. Both the purchasing power of people and the population count help in these revenue receipts.
Maharashtra, Karnataka, Uttar Pradesh and Tamil Nadu also lead in terms of collection of GST cess levied mainly on automobiles, with the highest rates applicable on sports utility vehicles. Aerated drinks and tobacco also attract cess. The Centre and states reported strong GST collections in FY24 with Uttar Pradesh reporting a 16% jump and Maharashtra and Karnataka a 15% jump each, while Tamil Nadu reported a 13% improvement in revenue collections.
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