As GST completed eight years since its nation-wide launch on July 1, it makes sense to look at how States have fared in GST collection. Odisha has recorded the highest growth in collections between FY19 and FY25.
Data from the GST portal show Odisha’s collections grew 126.1 per cent since FY19, the first full year since the launch of GST, reaching ₹60,928 crore in FY25. It has clocked a compound annual growth rate (CAGR) of 14.6 per cent, between FY19 and FY25; the only State to beat the 14 per cent target set out in the compensation cess formula laid out at inception.
According to an tax expert, “The State seems to have leveraged its mining and infrastructure activity to expand the tax base, while also investing in tight enforcement against evasion and fraudulent credits. This dual push — expanding taxable value and strengthening oversight — underpins its exceptional GST growth.”
Other leaders
Maharashtra remained the top contributor in absolute numbers, reporting ₹3.59 lakh crore in FY25, up from ₹1.70 lakh crore in FY19 (111.3 per cent jump). Karnataka followed with ₹1.59 lakh crore, while Gujarat and Tamil Nadu crossed ₹1.3 lakh crore each.
Experts pointed out that GST, being a destination-based tax, tends to generate higher revenues in States with large urban populations and high consumer spending. Maharashtra benefits from Mumbai’s status as the financial capital and its industrial base across the State, while Karnataka sees strong collections driven by Bengaluru’s role as India’s tech hub.
Haryana and Delhi also posted strong figures. Haryana’s GST revenue rose 116.1 per cent between FY19 and FY25, driven by real estate growth in NCR and increasing formalisation. Delhi grew 93.3 per cent, backed by consumption-heavy sectors and improved compliance systems.
Post-pandemic recovery was evident across most States. GST collections dropped sharply in FY21, but bounced back in FY23. “Revenge consumption, inflation in certain sectors and real-time data analysis of e-way bills and e-invoicing helped fuel the recovery,” he noted.
The laggards
However, Uttarakhand showed the slowest growth among all States, with a CAGR of 5.3 per cent and just 36.4 per cent absolute growth. Experts attribute this to the limited industrial diversification, logistical challenges and overreliance on tourism, suggesting that stronger infrastructure and sectoral expansion are essential for improvement.
States such as Gujarat and Tamil Nadu reported slower growth despite having a strong economy. “These States already had a huge formal economy and exporter base, which led to larger refund outflows and relatively lower net collections,” he explained.
Going forward, GST revenue is expected to accelerate, but sustaining this momentum will require States to invest in infrastructure, broaden their economic base and strengthen compliance mechanisms.
