Mahakumbh ripple effect: GST, VAT collections, fuel sales soar in Uttar Pradesh

The Prayagraj Mahakumbh, the 45-day mega religious event that concluded on February 26, not only drew 66 crore (660 million) pilgrims but also generated a significant economic footprint across Uttar Pradesh.

The event led to a sharp rise in tax collections across the sectors as well in fuel sales, helping the Uttar Pradesh government earn an additional around ₹500 crore revenue as Goods and Services Tax (GST)/Value Added Tax (VAT).

According to official data accessed by the HT, the government collected ₹239.47 crore in taxes from just a few sectors related to the Mahakumbh in January and February 2025. Prayagraj alone accounted for ₹146.4 crore, the highest among all zones. Simultaneously, the Indian Oil Corporation reported an average 36.25% increase in petrol and diesel sales in the district during January and February — a direct outcome of the heightened mobility and logistics demand.

“The Mahakumbh has contributed around ₹500 crore additional GST/VAT to the state exchequer, showing the scale of activities during the event,” a senior state tax department official said.

The tax increase spans key sectors, including railways, air travel, hotels, tent houses, advertising and civic bodies. In Prayagraj, tax receipts stood at ₹76.75 crore in February (January revenue paid in February) and ₹65.81 crore in March (February tax paid in March) along with ₹2.15 crore collected as TDS (Tax Deducted at Source).

“Railways alone contributed ₹124.6 crore ( ₹68.79 crore in February and ₹55.81 crore in March), while tent houses and advertising generated ₹9.38 crore, and the hotel sector ₹7.12 crore. Contributions also came from departments such as PWD and Nagar Nigam,” the official said, citing the data.

Source from: https://www.hindustantimes.com/cities/lucknow-news/mahakumbh-ripple-effect-gst-vat-collections-fuel-sales-soar-in-uttar-pradesh-101749237137450.html

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