Minimal Variation in GST Mop-Up Across States Despite Income Disparities: Crisil
Despite vast income disparities across states, there is minimal variation in the goods and services tax collections, according to a recent Crisil report.
While per capita GST, a proxy for per capita consumption expenditure, is higher in richer states, the growth in GST collections appears unrelated to the state's income level, the rating agency said.
For instance, the average GST growth during the five-year period, i.e., between fiscal 2020 and 2024 in Telangana — with the highest per capita income at Rs 3,44,219 — stood at 14.7%, not much different from the 15.6% growth in Bihar, which has the lowest per capita income at Rs 59,639.