In the realm of GST collection, Maharashtra emerges as the primary player, contributing 19.6% to the national pool in the fiscal year 2024 (April-February), solidifying its status as a significant economic force in India. According to the latest data on state-wise collections, Maharashtra takes the lead, followed by Karnataka as the second-largest contributor to the GST pool, as highlighted in a Crisil report released on April 11.

The Crisil report, titled Quickonomics, underscores Maharashtra’s dominance not only in absolute GST collection figures but also in per capita terms. When adjusted for population size, Maharashtra secures the top spot, indicating robust consumption spending within the state.

Drawing a comparison with states of lower income, the analysis by Crisil delineates the top three states exhibiting the highest per capita consumption spending: Maharashtra, Karnataka, and Haryana. Conversely, states such as Bihar, Uttar Pradesh, and Jharkhand occupy the bottom ranks in per capita consumption spending.

Furthermore, when analyzed on a per capita basis, states like Uttar Pradesh, West Bengal, and Rajasthan witness a downward shift in rankings, signifying relatively lower per capita consumption spending despite their substantial absolute GST collections. Conversely, states like Haryana, Telangana, Kerala, and Punjab show an upward trajectory in per capita spending, indicating higher average consumption expenditure per individual.

The report also underscores the correlation between per capita income and average consumption, noting that states with higher per capita income, such as Telangana, tend to exhibit higher average consumption levels compared to states with lower per capita income, like Bihar.

Despite significant disparities in per capita income between states like Telangana and Bihar, their average GST collection growth rates over the past five years (fiscal 2020 to fiscal 2024) remain relatively similar. Telangana records a growth rate of 14.7%, while Bihar’s figure stands at 15.6%.