• Notification Date: 12-12-2024
• Notification No: N/A

West Bengal and Telangana See Decline in Share of National GST Collections

Current data significantly reveals a regarding trend for various states as their share in the collections of national Goods and Services Tax (GST) has fallen. Specifically, West Bengal has seen its contribution decline from 4.6% in 2019-20 to 4% in 2024-25 till November. Uniformly, the share of Telangana has dropped from 4.2% to 3.7% during the same period. This decline significantly highlights difficulties in both the ability of the states in order to tackle economic growth in the developing substructure of GST.

Other states have also experienced depletion in their share of national collections of GST. Chhattisgarh also saw a loss of 0.4 percentage points, while Rajasthan, Madhya Pradesh, and Jharkhand all recorded a decline of 0.3 percentage points. These drops certainly point towards the underlying economic or structural obstacles that these regions face in terms of boosting their revenues of tax. Maharashtra, with its various economies, saw its increase in share from 19% in 2019-20 to 21.7% in 2024-25. The share of Haryana extended from 6.3% to 7.1%, while Karnataka also experienced growth from 8.8% to 9.5%. These states have leveraged strong industrial sectors and developed compliance of tax and policy support in order to exceed others in generating the revenue of GST.

Odisha also becomes quite visible as a surprise performer. The GST share of the eastern state rose from 3.1% in 2019-20 to 3.6% in 2024-25, which is somewhere showing notable growth. The per capita GST revenue of Odisha saw a considerable rise of 93.5% over the past five years, thereby signalling a shift towards better obedience of tax and economic growth. The growth in per capita revenues of GST across states paints a mixed picture. While Haryana leads with an increase of 85%, Maharashtra and Odisha also recorded magnificent gains. Although states like West Bengal, Chhattisgarh, and Bihar fall behind with growth rates of 48.9% and 40% respectively.

Additionally, the discrepancy in the performance of GST highly reflects differing levels of industrial development and tax obedience across states. As India continues to develop under the regime of GST, the policymakers may need to actively focus on supporting the states that are lagging with targeted interventions and developments in infrastructure in order to guarantee more balanced economic growth across the country.