An analysis of collections of Goods and Services Tax (GST) by the states shows that the mop up is clearly linked with urbanisation and prosperity as Delhi and Haryana combined exceed all states except Maharashtra.
According to a series of tweets by India Policy, all high performing states are highly urbanised, with exceptions like Kerala, which is highly urbanised, but sub-Saharan in collection.
This analysis is based on the state-wise gross domestic GST collection for the month of December, 2019. It provides some insights on the prosperity of the states.
The two western states, Maharashtra and Gujarat collect more GST than all five states of south India combined - Tamil Nadu, Karnataka, Telangana, Andhra Pradesh and Kerala.
According to the tweets, despite being a southern state, Kerala's collections are much less. Kerala collects less than 'poor' states like Rajasthan, Jharkhand, Odisha, and Chhattisgarh.
The tweets noted that Punjab was richer than Haryana, just two decades back but now Haryana's GST is more than four times that of Punjab.
The small hill state of Uttarakhand which has several industries due to earlier tax exemptions collects more than or almost as much as much larger states like Punjab, Bihar, and Assam. Uttar Pradesh with the population of a continent, is at No 5, the India Policy tweets said.
Another trend noted by the tweets was that states that have a big metro city are doing very well on the GST collection. This includes examples like Mumbai: Maharashtra, Delhi-NCR-Haryana, Bengaluru: Karnataka, Chennai: Tamil Nadu, Hyderabad: Telangana.
"Even West Bengal is doing OK, with Kolkata. Gujarat is doing very well, despite not having a big Metro city," it noted.
"Haryana collects almost as much consumption tax as all of UP. UP must be split into four states," the tweets from India Policy said.
(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.)
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.