The state of Gujarat has reported a robust increase in its Goods and Services Tax (GST) collections for the current financial year, showcasing steady economic momentum. According to official data released on Monday by the Office of the Chief State Tax Commissioner, the state's GST mop-up for the first eight months of the fiscal year 2025-26 (April to November) rose by a significant 9%.
Detailed Breakdown of Tax Collections
During the April–November period of FY26, Gujarat collected a total of Rs 52,390 crore in GST. This marks a notable increase from the Rs 48,085 crore gathered in the corresponding period of the previous financial year. The monthly collection for November this year stood at Rs 6,723 crore, reflecting a modest 1% growth over the Rs 6,655 crore recorded in November 2024.
This state-level growth in November marginally outperformed the national trend, where GST revenue saw a 0.7% rise. Beyond GST, the state's revenue streams for November included substantial contributions from other taxes. The state earned Rs 2,707 crore from Value Added Tax (VAT), Rs 1,025 crore from electricity duty, and Rs 14 crore from business tax.
Surge in Enforcement Activity and Overall Mobilisation
A standout performer in the November report was the revenue generated through enforcement actions. Income from mobile squad checks and exploration work witnessed a sharp jump, reaching Rs 32.40 crore. This figure represents a substantial 61.7% surge compared to the Rs 20.03 crore collected through similar activities in November of the last year.
When combined, the total revenue mobilised by the state tax department in November from GST, VAT, electricity duty, and business tax amounted to an impressive Rs 10,469 crore. This comprehensive figure underscores the breadth of the state's tax base.
Officials Cite Improved Compliance and Stable Economy
State officials have attributed the consistent year-on-year growth in tax collections to a combination of factors. They highlight improved compliance among taxpayers and enhanced monitoring mechanisms by the tax department. Furthermore, this steady revenue stream is seen as a reflection of stable economic activity across Gujarat's key industrial and commercial sectors.
The data suggests that Gujarat's economy is on a firm footing, with tax administration measures yielding positive results. The significant rise in enforcement revenue indicates a proactive approach to ensuring tax discipline, which in turn supports the overall health of the state's finances.
