Maharashtra Allocates ₹5,532 Crore GST Compensation To 29 Civic Bodies, BMC Gets Highest Share Of ₹2,587 Crore

Maharashtra Allocates ₹5,532 Crore GST Compensation To 29 Civic Bodies, BMC Gets Highest Share Of ₹2,587 Crore

The Maharashtra government has allocated ₹5,532.27 crore as GST compensatory grants to 29 municipal corporations, with the BMC receiving the highest share of ₹2,587.54 crore. The grants compensate civic bodies for revenue losses after GST replaced octroi and local taxes in 2017. Funds cover April-May allocations, with deductions for sewer-cleaning equipment and streetlight payments.

Ravikiran DeshmukhUpdated: Wednesday, May 13, 2026, 10:00 AM IST
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Maharashtra Allocates ₹5,532 Crore GST Compensation To 29 Civic Bodies, BMC Gets Highest Share Of ₹2,587 Crore | file pic

Mumbai: The BMC has been allocated ₹2,587.54 crore by the state government as a compensatory grant from Goods and Services Tax (GST) collections. The amount accounts for nearly half of the ₹5,532.27 crore allocated to 29 municipal corporations across Maharashtra.

The state sanctioned ₹5,585.68 crore as compensatory grants for the 29 municipal corporations, the actual amount being distributed is ₹5,532.27 crore. Around ₹53.41 crore will be deducted towards the supply of high-capacity suction and jetting machines with water recycling facilities, used for cleaning sewers and treatment plants, as well as for payments related to streetlights supplied by Energy Efficiency Services Ltd, a Government of India enterprise.

A government resolution (GR) approving the allocation of funds was issued by the Urban Development Department (UDD) on Tuesday. The compensatory grant is provided to municipal corporations following the discontinuation of entry tax, octroi, local body tax and cess after the introduction of GST in 2017. The amount approved by the UDD covers the months of April and May.

Among civic bodies in the Mumbai Metropolitan Region, Navi Mumbai Municipal Corporation (NMMC) has been allocated ₹316 crore, followed by Thane (TMC) at ₹221 crore, Vasai-Virar (VVMC) at ₹94 crore, Panvel (PMC) at ₹90 crore, Bhiwandi-Nizampur (BNMC) at ₹68 crore, KalyanDombivali (KDMC) at ₹59 crore, and Mira-Bhayandar (MBMC) at ₹58 crore.

From the rest of the state, Pune Municipal Corporation will get ₹485 crore, PimpriChinchwad Municipal Corporation ₹457 crore, Nagpur ₹318 crore and Nashik ₹269 crore. At the lower end of the list are the municipal corporations of Parbhani and Latur, which will receive ₹1.74 crore and ₹1.38 crore, respectively. Comparatively smaller municipal bodies such as Jalna and Ichalkaranji will receive ₹10 crore and ₹18 crore, respectively.

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