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Key Points

Maharashtra's finance department estimates a significant Rs 9,500 crore shortfall in state GST collections for the upcoming fiscal year. This projection follows the GST Council's recommendations for a revised two-slab structure that affects tax rates across various sectors. However, state government sources express confidence that increased transaction volumes from lower GST rates will help recover these losses. The state remains India's top GST contributor with nearly Rs 3.60 lakh crore collected in 2024-25.

Key Points: Maharashtra Estimates Rs 9500 Cr SGST Loss from Two Slab Structure

  • Maharashtra projects Rs 9,500 crore SGST revenue loss from new GST structure
  • State remains optimistic about recovering through increased transaction volumes
  • Finance department estimates discussed in CM Fadnavis meeting
  • Maharashtra leads all states with Rs 3.60 lakh crore GST collection
2 min read

Maha govt estimates loss of Rs 9,500 cr in SGST mop up due to two slab structure

Maharashtra govt projects Rs 9,500 crore SGST shortfall in FY 2025-26 due to new GST slab structure but expects to recover through increased transaction volumes.

"The department’s preliminary estimates show the government is likely to incur a loss of Rs 9,500 crore during 2025-26 - Government sources"

Mumbai, Sep 4

Maharashtra government’s initial estimates show that it will incur a loss of about Rs 9,500 crore in the collection of state GST (SGST) during the current fiscal 2025-26, following the GST Council’s recommendations for a slab structure.

However, the state government sources said that it may make up the loss after the rise in transactions due to the cut in GST rates on several items from varied sectors. “These estimates were worked out by the finance department and discussed at the meeting chaired by Chief Minister Devendra Fadnavis two days ago. The department’s preliminary estimates show the government is likely to incur a loss of Rs 9,500 crore during 2025-26. However, the government is optimistic that it will make up revenue loss,” said government sources.

The state government has estimated SGST mobilisation of Rs 1,76,119 crore in 2025-26 against the revised estimates of 2024-25 of Rs 1,67,905 crore. SGST has been a major source of the state’s own revenue. The government, during the annual budget for 2025-26, has projected the state’s own revenue of Rs 3,87,673.72 crore against the revised estimates of 2024-25 of Rs 3,67,467.23 crore, a rise of 51.20 per cent.

Government sources recalled that the government earlier had slashed the stamp duty, fearing that it might incur a loss. “However, the government mopped up more revenue and did not incur a loss as expected. With the two slab structure, the government is hopeful to recover losses that it may incur,” sources said.

Maharashtra tops among other states in mobilising the highest monthly GST collection. During 2024-25, Maharashtra emerged as the top contributor with nearly Rs 3.60 lakh crore, followed by Karnataka, Gujarat, Tamil Nadu and Haryana, according to the data by the GST Council.

Earlier, Deputy Chief Minister Ajit Pawar, during the winter session of the state legislature held in December last year, appealed to the traders to take the benefit of the Amnesty Scheme announced by the state government to waive interest or penalty or both related to State GST demands for the years 2017-18 and 2018-19. The amnesty schemes have been launched under section 73 of the Maharashtra Goods and Services Tax Act, 2017. The disputed amount, comprising tax and penalty, was Rs 54,000 crore. Out of this, the disputed tax amount was Rs 27,000 crore, while the penalty was worth Rs 27,000 crore.

Sanjay Jog can be contacted at sanjay.j@ians.in

- IANS

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Reader Comments

P
Priya S
As a small business owner, the simplified slab structure is welcome news. Lower GST rates mean more competitive pricing and hopefully more customers. The initial loss might be recovered through increased transactions. Good move overall!
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Amit K
Maharashtra contributing ₹3.60 lakh crore in GST shows our state's economic strength. Even with this temporary setback, I'm confident we'll bounce back. The stamp duty example gives hope! 💪
S
Sarah B
While I appreciate the simplified tax structure, the government should be more transparent about how they plan to compensate for this revenue gap. ₹9,500 crore is taxpayers' money - we deserve detailed explanations.
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Vikram M
The amnesty scheme for 2017-19 is a relief for many businesses still struggling with GST compliance issues. Hope more traders take advantage of this opportunity to clear pending dues.
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Nisha Z
Simplified GST slabs will definitely boost consumption. As a consumer, I'm looking forward to lower prices on everyday items. More money in common people's hands is always good for the economy! 👍

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