Poorer states score big in GST mop-up

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Consuming states such as Bihar, Odisha, UP and Madhya Pradesh many of whom may be poorer but have large populations are faring better in goods and services tax (GST) collections than their industrialised peers such as Maharashtra, Gujarat, Karnataka and Tamil Nadu. Data accessed by TOI showed that West Bengal is among a handful of non-industrialised consuming states, which has not fared well during the first four months of the current financial year, when overall GST collections rose 9% to Rs 3.56 lakh crore. Among the major laggards was Delhi, which saw a 2% decline in mop-up, which was estimated at Rs 12,700 crore during April-July 2019, compared to a little under Rs 13,000 crore a year ago.

At the top of the heap are the states in the North East, led by Nagaland (39%), Arunachal Pradesh (35%), Sikkim (32%) and Meghalaya. But the overall collections for these states are between Rs 370 crore and Rs 680 crore. Government officials and tax experts said the data showed the expected shift in balance towards the consuming states has started, a fear that had prompted Gujarat, Maharashtra and Tamil Nadu to demand compensation when the Narendra Modi government began negotiations for implementing GST. Later, the Centre got the BJP-ruled states to drop the demand.

Read More at: https://timesofindia.indiatimes.com/business/india-business/poorer-states-score-big-in-gst-mop-up/articleshow/70651418.cms