Maharashtra’s GST collection jumps 14.6%, stays India’s top tax-contributing state

Maharashtra State GST Department reported a robust 12.6 percent year-on-year increase in total tax collections for the financial year 2025–26, with revenues from Goods and Services Tax (GST), Value Added Tax (VAT) and Professional Tax (PT) reaching Rs 2.51 lakh crore, up from Rs 2.23 lakh crore in the previous fiscal.

Driven by steady economic activity and improved compliance, GST collections alone rose 14.6 percent to Rs 1.87 lakh crore, reinforcing Maharashtra’s position as the highest GST-contributing state in the country. The state’s GST mop-up remains more than double that of the second-highest state, underlining its dominant role in India’s indirect tax ecosystem.

The combined contribution of GST, VAT and PT accounted for nearly 64 percent of the State’s Own Tax Revenue (SOTR), highlighting the contribution of state GST department in maintaining fiscal strength. The department also exceeded its Budget Estimate (BE) for the fourth consecutive year, achieving 100.2 percent of the target for FY26.

Department said, the strong performance came despite challenges arising from GST rate rationalisation. The impact of rate adjustments was offset by higher domestic consumption and sustained administrative efforts to widen the tax base and plug leakages.

The official statement from Maharashtra GST department stated, “Despite certain headwinds arising from GST rate rationalization, the Department, through sustained efforts and improved compliance, has successfully overcome these challenges and recorded a robust growth rate of 14.6 percent”.

The state’s ability to maintain double-digit growth in collections, even amid policy changes, signals resilience in economic activity and compliance levels.

Key reforms undertaken by the state GST department during the year included the adoption of advanced analytics for enforcement, implementation of data-driven feedback mechanisms, and closer scrutiny of high-risk taxpayers. State tax authorities also focused on taxpayer outreach programmes to improve voluntary compliance, while continuing to streamline processes to enhance ease of doing business.

Source from: https://www.moneycontrol.com/news/business/maharashtra-s-gst-collection-jumps-14-6-stays-india-s-top-tax-contributing-state-13877658.html

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