04-04-23 Daily-Gujarat-GPSC Current Affairs

GSTcollection inGujaratsurpassed the Rs 1 lakh crore mark in fiscal 2022-23 to touch Rs 1.14 lakh crore. With this, the total tax mop-up in the state grew 17.5% during the fiscal. The rise in commercial activity after the lifting of Covid-related restrictions during the year coupled with are among the key reasons for Growth in the tax collection in Gujarat.

At the time of the GST roll-out, the Centre used to compensate states to ensure a protected revenue growth at 14% per annum for five years. Fiscal 2022-23 was the first year since the Centre stopped compensation to states. Yet, GST collection in Gujarat grew 17.5%, indicating the state is well-positioned to maintain its revenue inflows. This, in fact, is the highest growth rate since the new tax regime was rolled out except for the 30% growth during FY22, albeit on a lower base of tax collection during the pandemic year FY21.

During the year, Gujarat’s income through SGST (Rs 65,746 crore) and value-added tax (VAT) on non-subsumed items (Rs 38,037 crore) stood at Rs 1.03 lakh crore in FY2023.