Maharashtra continues to march ahead in the country’s total record GST collection of Rs 1,23,902 crore in March, collecting Rs 17,038.49 crore this year, as against Rs 15,002.11 crore in the corresponding period last year, a record 14 per cent rise.
Despite being hit hard by the coronavirus pandemic induced lockdown and economic downturn, Maharashtra has shown a rise in GST collections, indicating a recovery in the state economy, which grew at minus 8 per cent in 2020-21.
According to the Union finance ministry, the GST revenues during March 2021 are the highest since the introduction of GST. In line with the trend of recovery in GST revenues over past five months, revenues for March 2021 are 27 per cent higher than those for the same period last year.
As far as Maharashtra is concerned, the state government, in the annual budget for 2021-22, had estimated its own tax revenue at Rs 2,43,490 crore, an annual increase of 14 per cent over 2019-20. The growth rate for own tax revenue is estimated to be significantly higher than the growth rate for GSDP (an annual increase of 3 per cent over 2019-20). Hence, the own tax to GSDP ratio is estimated to increase from 6.7 per cent in 2019-20 to 8.2 per cent in 2021-22.
In 2021-22, State GST (SGST) is estimated to be the largest source of its own tax revenue (48 per cent of the state’s own tax revenue). The SGST in 2021-22 is estimated to be Rs 1,17,807 crore (an annual increase of 19 per cent over 2019-20). In 2021-22, Maharashtra is expected to generate Rs 44,000 crore through the collection of sales tax and VAT, an annual increase of 8 per cent over the 2019-20.
As per the revised estimate of 2020-21, Maharashtra is estimated to receive a total of Rs 15,000 crore as GST compensation grants. The state estimates to receive Rs 18,000 crore as GST compensation grants for the year 2021-22.
Further, the total revenue receipts for 2021-22 are estimated to be Rs 3,68,987 crore, an annual increase of 14 per cent over actual revenue receipts in 2019-20. Of this, Rs 2,70,140 crore (73 per cent) will be raised by the state through its own resources, and Rs 98,847 crore (27 per cent) will come from the Centre. Resources from the Centre will be in the form of state’s share in Central taxes (11 per cent of revenue receipts) and grants (15 per cent of revenue receipts).