Winning Bizness Desk
Maharashtra Occupies Number One Spot in GST Collection in FY 26
The western Indian state of Maharashtra has become the number one state in terms of contributing towards GST collections in the country in FY 26.
Its contribution to the top ten GST collecting states increased significantly from around 21.4 per cent n FY 25 to nearly 22.1 per cent last fiscal (FY 26).
This is a clear indication of Maharashtra’s continued dominance as the country’s largest industrial and commercial hub.
The state emerged as the largest contributor with a collection of over Rs 3.61-lakh-crore, followed by Karnataka, Gujarat, Tamil Nadu and Haryana, according to data from the GST Council.
States and Union Territories (UTs) with low GST collections included Lakshadweep, Mizoram, Ladakh, Andaman & Nicobar Islands and Manipur.
The country’s GST revenue composition registered a shift in FY 26 with all three core GST components—Central GST (CGST), State GST (SGST) and Integrated GST (IGST)—accounting for a higher share of total collections compared to the previous year while the contribution of compensation cess slid.
IGST remained the biggest contributor, accounting for 39 per cent of the total GST collections in FY 26, and also registering a northward movement from the 36 per cent in the previous fiscal year (FY 25).
The SGST contribution increased to 33.8 per cent from 30.8 per cent, while CGST’s share increased to 27.2 per cent from 24.7 per cent during the same period.
Kharif Crops Sowing Adversely Affected as Monsoon Remains Weak
Because of the delay in monsoon rainfall, sowing of kharif crops, including paddy, has declined steeply this season.
The total acreage has reached just 182.72-lakh hectares as of June 25 which is a sharp 23 per cent slide from the 236.46-lakh hectares during the same period of the last year.
This was stated by the Union Agriculture Ministry.
In addition to rice, pulses, oilseeds, coarse cereals and cotton have all registered lower sowing as compared the previous year, the data showed.
Paddy acreage stood at 25.75-lakh hectares, down 25.17 per cent from the 34.41-lakh hectares a year-ago.
Pulses sowing also slid significantly by 30.47 per cent to 14.92-lakh hectares from 21.4-lakh hectares, while oilseeds area plunged more than half (53.33 per cent) to 16.99-lakh hectares as against 36.41-lakh hectares last year.
An important point to note here is that within pulses, tur/arhar sowing was particularly low at 3.56-lakh hectares as compared to 8.45-lakh hectares previously.
In oilseeds, groundnut and soybean acreage both slid steeply to 8.87-lakh hectares and 6.92-lakh hectares, respectively. The acreage of both in the last year stood at 15.29-lakh hectares and 19.97-lakh hectares, respectively.
Coarse cereals were sown on 31.84-lakh hectares, down from 36.07-lakh hectares. Cotton sowing also suffered, slipping a steep 34.61 per cent to 29.66-lakh hectares from 45.36-lakh hectares.
Sugarcane, however, clocked a small increase to 57.31-lakh hectares from 56.64-lakh hectares, while jute and mesta acreage also climbed up marginally to 6.25-lakh hectares from 6.13-lakh hectares.
Here, what needs highlighting is that the south-west monsoon has been 42 per cent below normal as of June 24, with central India facing a 59 per cent deficit.
The east and north-east regions are facing a 41 per cent deficit while the southern peninsula and north-west India are facing a shortfall of 28 per cent and 22 per cent, respectively.
India’s June GST Revenue Collection Climbs 13.9 pc to Rs 1.95-lakh-cr
The country’s Goods and Services Tax (GST) revenue collection increased 13.9 per cent on a Year-on-Year (YoY) basis to Rs 1,94,812-crore in June of this year as very strong import tax collections offset the relatively moderate growth in domestic revenues.
A significant point here is that the GST collection is nearing the coveted Rs 2-lakh-crore mark and there is a strong possibility that this mark may be breached in the coming months.
Gross domestic GST revenue stood at Rs 1,34,774-crore, up 6.5 per cent from the year-ago period. GST collections from imports, however, surged 34.6 per cent to Rs 60,038-crore, providing the biggest boost to the overall monthly collection.
After accounting for refunds, the government’s net GST revenue moved northward 11.2 per cent to Rs 1,62,377-crore in June, as compared to Rs 1,45,984-crore in the year-ago month.
An important highlight here is that the total refunds issued during the month climbed up 29.1 per cent YoY to Rs 32,436-crore which indicates a faster processing of claims. Domestic refunds rose 42.9 per cent to Rs 17,767-crore while export-related GST refunds through ICEGATE increased 15.6 per cent to Rs 14,669-crore.
During Q1 FY 27, gross GST collections reached Rs 6.32-lakh-crore, clocking an 8.4 per cent northward movement over the Rs 5.83-lakh-crore collection in the same period the last year.
Net GST revenue for the quarter increased 7.1 per cent to Rs 5.40-lakh-crore.
Among states, the northern state of Uttar Pradesh (UP) clocked one of the strongest performances among major states with a 19 per cent expansion in domestic GST collections. Assam came in after UP with 17 per cent, Punjab with 14 per cent and Gujarat with 12 per cent.
The southern states of Telangana and Kerala both clocked an 11 per cent growth each with Karnataka registering a ten per cent growth and Maharashtra nine per cent.
Another southern state—Tamil Nadu—witnessed a two per cent slide, while Madhya Pradesh and Rajasthan both posted a five per cent decline each.
Tirupur Registers Record Rs 46,000-cr Exports in FY 26
Notwithstanding the uncertainties arising out of the war in West Asia as well as the tariffs imposed by the United States (US), Tirupur in the southern state of Tamil Nadu which is also known as the country’s knitwear capital has clocked its highest-ever exports of Rs 46,000-crore in FY 26.
Exports rose three per cent from Rs 44,747-crore in FY 25.
The Tirupur Exporters Association (TEA) has now set a target of achieving a Rs 1-trillion in exports by 2030. The figures were announced at an event attended by Union Textiles Minister Mr. Giriraj Singh, who assured the government’s full support to the region’s industrial growth.
Mr. Singh said that the Centre aimed to up India’s textile exports from the current USD 38-billion to USD 100-billion by 2030.
According to the President of TEA, Mr. K M Subramanian, Tirupur accounted for nearly 60 per cent of the country’s knitwear’s exports in FY 26 and generated employment for more than 1-million people during the year.
Mr. Subramanian pointed out that despite the geo-political uncertainties, a strong order-book and a weaker Rupee against the US Dollar helped boost exports.
The average exchange rates during FY 26 were around Rs 85.6-to Rs 86 per dollar as compared to about Rs 83.1-to-Rs 83.3 in the previous year (FY 25).
To help achieve the Rs 1-trillion export target, TEA submitted a list of demands to Mr. Singh, which included worker accommodation and hostel facilities, zero import duty on cotton, extension of the Rebate of State and Central Taxes and Levies (RoSCTL) scheme, and early implementation of the Textile Expansion and Employment (TEEM) scheme.
Mr. Singh assured the industry of the Centre’s full support and said that India’s economic growth, infrastructure development and Free Trade Agreements (FTAs) have created new opportunities for the textile sector.
