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According to data available from the GST Council for this fiscal year up to January 2024, Maharashtra, Karnataka, Uttar Pradesh, Odisha, and Tamil Nadu are leading in the collection of Goods and Services Tax (GST) cess, which is primarily levied on the sale of automobiles and helps the Centre pay off the market loans taken to give states liquidity during the pandemic.
Largest state economy, Maharastra with ₹19,125 crore collected between April and January of the current fiscal year, followed by ₹13,738 crore from Karnataka and ₹13,004 crore from Uttar Pradesh. Tamil Nadu reported collecting ₹7,291 crore in cess, compared to Odisha's ₹7,729 crore. West Bengal, Jharkhand, Gujarat, and Haryana are the other major GST cess providers.
GST is levied on automobiles, aerated drinks, and tobacco that are in the 28% GST slab. The rate of cess varies depending on the product and specifications. It ranges from 1% for petrol, CNG, or LPG vehicles meeting certain conditions and 22% for sports utility vehicles to 290% for certain smoking mixtures for pipes and cigarettes.
This levy will lapse in March 2026 or earlier but, based on the need for mobilizing revenue, some form of tax may replace it depending on a decision to be taken by the federal indirect tax body, the GST Council, Mint reported on 12 February. Official data also showed that Maharashtra and the most populous state, Uttar Pradesh, topped in terms of proceeds of integrated GST or IGST on cross-border trade settled by the Central government.
The importing state gets proceeds of IGST under the indirect tax system. Maharashtra has received ₹39,684 crores of IGST settlement so far this financial year, while Uttar Pradesh received an IGST settlement of ₹37,436 crores. The other major recipients of IGST proceeds include Karnataka, Tamil Nadu, Rajasthan and Telangana.
Maharashtra, Gujarat, Karnataka and Tamil Nadu remained the top-performing states in collecting GST on goods and services sold in the state. Maharashtra collected ₹83,114 crore of state GST or SGST so far this fiscal, followed by ₹34,656 crore by Gujarat, ₹33,785 crore by Karnataka and ₹ 27,044 crore by Uttar Pradesh. The figures confirm that some of the industrialized state economies like Maharashtra, Karnataka and Tamil Nadu are also major importers and consumers of locally produced goods and services.
GST revenue receipts of the Centre and states have so far shown year-on-year growth of 10-15% in each of the 11 months so far this year. GST receipts which grew at 11.63% in April last year, had seen a sharp spike during the festive months of October and November when collections showed a growth of 13.37% and 15.12% respectively. In February, collections went up 12.54% to ₹1.68 trillion. The monthly average collection is ₹1.67 trillion, as per data available from the finance ministry.
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