MC Analysis: GST data shows Assam, Odisha outpace Maharashtra, Gujarat in collections growth

Bihar and Odisha have done better on GST growth

The first eight months of the current fiscal were good for states like Assam, Odisha, Bihar and Uttar Pradesh, as these states outpaced other major states in terms of growth in GST collections, according to a Moneycontrol analysis.

Assam and Odisha logged a higher growth rate in GST collections during April-November at 14.3 percent and 12.6 percent, respectively, compared to the similar period in FY24 than Maharashtra, which grew at 12.3 percent.

Bihar and Uttar Pradesh have trumped the likes of Gujarat in growth in GST collections with an 11.1 percent increase.

Growth in these states was even higher than the national average of 10.3 percent.

On the other hand, Tamil Nadu and Rajasthan have lagged behind the national average with less than 9 percent growth.

Gujarat and Maharashtra have a much larger base than these states, but even matching growth rates bodes well for these economies, especially as their growth lagged the national average in FY24.

Although Uttar Pradesh grew at 17.2 percent in FY24, Bihar and Odisha logged slower growth, at less than 10 percent.

Odisha and Bihar, besides Delhi, Assam and Gujarat, were among the five states to witness a faster pace of growth in the first eight months of FY25 compared with a similar period during the previous year.

Festival lift

Most of the push has come in the past few months characterised by festive spending.

Bihar and Odisha lagged Maharashtra, Delhi, Haryana and Karnataka in terms of growth during the festive season. But at around 10 percent, growth was higher than the national average of 8.8 percent.

In the case of Bihar, the push in festive spending came on the back of just 3.2 percent GST collection growth witnessed in the previous year—one of the lowest growth rates along with West Bengal.

Agrarian economies seem to have done better, with agriculture growth outperforming industry in the second quarter of the year owing to good monsoon.

Losing ground

A long-term analysis of consumption trends using the GST data, however, puts these states on a weaker footing.

While Delhi and Tamil Nadu have held ground as far as their share in GST collections is concerned, Uttar Pradesh, Rajasthan, Bihar have ceded ground.

Bihar’s share in GST collections at 1.2 percent during April-November 2024 was lower than the pre-pandemic share of 1.4 percent for the first eight months in FY20, while UP’s share declined from 7 percent to 6.8 percent.

On the other hand, Maharashtra’s share went up from 19.6 percent in the pre-pandemic period to 21.4 percent in April-November 2024.

Karnataka has also witnessed a jump with its share rising to 9.5 percent from 8.8 percent earlier.

Odisha has also benefitted with a rising share in GST collections, as its share increased to 3.6 percent in FY25 from 3.2 percent in the first eight months of FY20.