MC Analysis: MP, Maharashtra biggest GST gainers in post-Covid period

According to a Moneycontrol analysis, Madhya Pradesh and Maharashtra have experienced the highest gains in tax buoyancy since the introduction of GST in 2017. Madhya Pradesh’s tax buoyancy increased from 0.7 between FY14-FY17 to 2.1 post-GST in FY22-24, tripling its tax collection efficiency. Maharashtra saw nearly a fourfold increase, while Tamil Nadu and Delhi also reported significant improvements, with Tamil Nadu’s buoyancy up 197% and Delhi’s up 134%. Punjab had the highest average tax buoyancy post-GST, and overall state tax buoyancy improved, with a higher share of own tax revenues in total revenues. However, Bihar and Punjab lagged, with Bihar’s tax buoyancy declining and Punjab’s overreliance on central taxes affecting its performance.