Amid slide in GST collections, authorities out to identify causes

{ APRIL-JUNE QUARTER

- Brajendra K Parashar

A sustained slide in Goods and Services Tax (GST) collections over the April-June quarter has triggered serious concern in Uttar Pradesh as it is in contrast to a brighter national picture and comes with negative growth in June in the state.

With GST being the state’s main revenue source, the dip has raised red flags in the government. The authorities are now taking all possible steps to identify underlying causes. Officials warn that if the trend persists, it could affect funding for key welfare and development schemes.

On the other hand, Uttar Pradesh’s GST growth in April and May in 2024 was far above the national average.

In April 2024, the state's GST growth over the same month of 2023 stood at 19% against the national average of 13%, it further grew to 22% in May the same year visa-vis 15% national average.

“No doubt, the GST growth in the state in the first quarter and more especially in the month of June has been poor causing a concern to all of us,” state tax commissioner Nitin Bansal said.