DATA COLLECTED AND TABLES PREPARED BY CA HARSHIL SHETH (I always wanted to make some State wise GST collection analysis so here it is) . I have done really hard work in collecting 12 months figures. Please appreciate that this data was not readily available. Also I want to make it clear that this is just primary analysis, I am not any Economist.
Facts we can derive from above table
1. First 5 states together (i.e Maharashtra, Gujarat , Karnataka , Tamil Nadu, Uttar Pradesh) contribute 50% of GST collection of total of country .
2. First 10 state contributes 75% of GST collection of Country (These 10 states are Maharashtra , Gujarat, Karnataka, Tamil Nadu, Uttar Pradesh, Haryana, West Bengal, Delhi, Telangana and Odisha).
Primary Observations –
Of Course GST is composition based tax so those 10 states definitely have higher consumption that lead to High GSt collection but I believe there are always other factors And Consumption is NOT only criteria why these States have higher revenue Factors might be responsible
1. These 10 states have more business/entities that lead to generate more Revenue and that result into Higher GST collection. Big corporates have been established in those States since ages giving employment to masses and attracting people from other states for employment .
2. High Employment opportunities in that state ( leads to high income) + In turn leads to more Purchasing power of people. These 10 states must have higher “per capita “ earning that’s why these states have more revenue because more earning – à more consumptionà more Revenue
3. Stage of development in that State ( developed or underdeveloped or developing) Also responsible for High consumption which lead to High GST revenue
4. State policies for business & start up that supports , New entrepreneurs coming in these states like people choosing entrepreneurship providing employment
Primary conclusion-
These 10 states have more GST revenue which means these state spends more on Infrastructure Health , Education , welfare and development. Also seems to be more Business-friendly
Disclaimers about DATA-
1. I have taken 12 months from JULY 2021 TO JULY 2022 because these month where economy growth have been risen and GST collection were breaking records. And these wre months were covid effect was nullified or least
2. January 2022 state wise were not available so I have derived by yearly total of 11 month of particular state divided by Total collation of all states for 11 month
3. This collection figures are other than Imports so actual figures definitely much higher than this.
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