Karnataka GST collections not slowing down, says top official

'Karnataka’s GST collection has grown at 18 per cent in 2023-24 compared to the national average of 12 per cent, Maharashtra’s 18 per cent and Gujarat’s 10 per cent. So, the GST collection in Karnataka is not slowing down,' Additional Chief Secretary (Finance) L K Atheeq said.

Bengaluru: Additional Chief Secretary (Finance) L K Atheeq has had to clarify that Karnataka’s GST collections are not slowing down amid concerns expressed by industry veteran T V Mohandas Pai after the state posted a 9 per cent growth rate for April.

Atheeq and Pai had an exchange over this on X (formerly Twitter).

“Worrisome sign. After a long time, growth rate of GST (is) slowing down in Karnataka,” wrote Pai, chairperson of Aarin Capital, and urged the state government to review it.

Pai’s comment was about GST revenue collection figures shared by the union government for April 2024.

India’s gross GST collections hit a record high of Rs 2.10 lakh crore in April, registering a year-on-year growth of 12.4 per cent.

GST revenue collection in Karnataka increased by 9 per cent to Rs 15,978 crore. Maharashtra’s GST mop-up rose 13 per cent to Rs 37,671 crore. Gujarat, too, had a 13 per cent growth. It was 11 per cent and 12 per cent in Telangana and Andhra Pradesh, respectively.

Disagreeing with Pai, Atheeq said he was referring to figures for April 2024 over April 2023. “Karnataka’s GST collection has grown at 18 per cent in 2023-24 compared to the national average of 12 per cent, Maharashtra’s 18 per cent and Gujarat’s 10 per cent. So, the GST collection in Karnataka is not slowing down,” Atheeq said.

Atheeq, who is also the additional chief secretary to the chief minister, explained that growth rates were low “for everyone” when compared with 2022-23. That is because “2022-23 growth is over the Covid year of 2021-22 and hence it is very high,” he said.

In response, Pai acknowledged Atheeq’s point. “I know this well. I read the data every month and have tweeted. I am concerned about March, the big month of the year,” he said. “Karnataka has done poorly when many others have done well. Is that a trend or one-off?”

Atheeq said it is a one-off case and “not part of any slowing trend”. Karnataka, he said, continues to be among the top three best performers in GST collection “often occupying number one or two slots”. Their exchange ended with mutual ‘thank you’.