Gujarat’s GST collection reached an all-time high of Rs 8,497 crore in October 2021, since the launch of the new tax regime, due to rising raw material costs, costlier commodities, and stronger demand in the run-up to the Christmas season. Tax revenue increased by 25% year on year to Rs 6,797 crore in October 2020. Gujarat came in second in terms of GST collection, beating Maharashtra, which collected Rs 16,355 crore in October.
“Sales have improved across sectors due to an upswing in demand during the festive season and in the run-up to Diwali,” said JP Gupta, principal secretary, state finance department. “At the same time, the turnover of sales has gone up due to rises in prices of certain commodities, and as a result, the tax collection numbers have gone up,” he added.
According to the Union Finance Ministry, revenues would have been higher if sales of vehicles and other products had not been affected due to semi-conductor supply disruptions.
GST collections in Gujarat increased by 9.2% month over month, to Rs 7,780 crore in September. Gujarat’s state GST (SGST) collection increased by 40% in October. According to state government data, SGST collection in October this year was Rs 3,821 crore, up from Rs 2,731 crore in the same month previous year.
“The number of e-way bills generated has increased by 21%. This is also an indication that demand and production are improving “Gupta stated.