Automobile and infrastructure development drive UP’s GST revenue growth

Automobile, infrastructure development and iron and steel have registered the highest GST revenue growth in Uttar Pradesh in 2022-23, according to a report prepared by the state revenue department.

The overall GST growth in the state in the fiscal year that ended last month was 21 percent over the previous year’s figure, when economic activities were largely disrupted by Covid-19 , according to the “business sector collection report” stated.

“2022-23 saw economic pick-up for the first time since the pandemic began in March 2020 and this led to positive growth in most sectors, with overall growth above 20 per cent despite UP not receiving no compensation from the UP. the Center after June 2022,” said a senior department official. “Until June, UP received around compensation ₹11 billion,” he added.

The government’s GST and VAT revenue collection in the last financial year was flat ₹1.8 lakh crore, which is 86 percent of the ₹1.24 lakh crore revenue target set for the year.

According to the report, the automobile sector recorded a 47% increase in revenue by 2022-23. While revenue from the sale of four-wheelers and heavy vehicles in the state grew by more than 30 percent, the growth in revenue from the sale of two-wheelers was over 17 percent.

Both segments generated revenue of ₹4,269 million and ₹1,475 million from 416 and 356 dealers, respectively.

Infrastructure development (building roads, highways, bridges, etc.), on the other hand, recorded the second highest revenue growth at 37%, contributing revenue of ₹1,438 million from 331 dealers.

The steel sector generated income of more than ₹3,000 million to the Treasury from 868 dealers with a sector that has grown by nearly 21%.

Other businesses that recorded significant revenue growth are FMCG (13%), electronics (18%), petroleum products such as lubricants and mobile oil/2T (21%), electrical products (20% ), coal and coke (25%). and chemicals (15%). Although the GST growth in the cement sector was only 6%, its revenue contribution was ₹2.7 billion is one of the highest.

The medical sector, which is otherwise one of the major sources of revenue, grew by just 2% in 2022-23 over the previous fiscal.

“In 2021-22, medicines sold more because of the Covid situation, and the government spent a lot on buying medicines, Covid vaccines and booster doses. That’s why the sector didn’t grow as much as in the previous fiscal year”, said another official.