Goods and Services tax (GST) collection inGujaratstood at Rs 9,574 crore in February, growing by 8% against Rs 8,873 crore last February.
Compared to the preceding months, the rate of Growth in GST collection has slowed. GST collection grew by 26% in December 2022 (Rs 9,238 crore) and 11% in January 2023 (Rs 10,008 crore) against the corresponding months of the previous year.
The rate of growth in GST collection slowing is a function of slowing economic activity and a decline in demand, according to players. “The fourth quarter is usually expected to clock better growth. However, as demand has declined in domestic and international markets, industrial production has also gone down. Reduced consumption and lower consumer activity have both led to the slowing of growth in tax collection in Gujarat,” said Pathik Patwari, president, Gujarat Chamber of Commerce and Industry (GCCI).
The state tax mop-up declined by 3.3% to Rs 3,215.75 crore in February against Rs 3,328 crore in January.