Will Maharashtra Government Lose Rs 9,500 Crore in SGST Collection?

Mumbai, Sep 4 (NationPress) The Maharashtra government has projected a potential loss of approximately Rs 9,500 crore in the collection of state GST (SGST) for the fiscal year 2025-26, following the GST Council's endorsement of a new slab structure.

Nonetheless, sources within the state government suggest that this loss might be offset by an increase in transactions resulting from reduced GST rates on various products across multiple sectors.

According to government sources, "These projections were formulated by the finance department and deliberated upon during a recent meeting led by Chief Minister Devendra Fadnavis just two days ago. The preliminary estimates indicate that the government is poised to face a loss of Rs 9,500 crore in 2025-26. However, the government remains hopeful about recovering from this revenue shortfall."

The state administration anticipates SGST mobilization of Rs 1,76,119 crore for 2025-26, compared to the revised estimates of Rs 1,67,905 crore for 2024-25.

SGST serves as a critical source of the state's own revenue. In the annual budget for 2025-26, the government has forecasted its own revenue at Rs 3,87,673.72 crore, an increase from the revised figures of Rs 3,67,467.23 crore for 2024-25, marking a rise of 51.20 percent.

Government representatives noted that previously, a reduction in stamp duty was implemented due to concerns about potential losses.

"In fact, the government ended up collecting more revenue than anticipated and did not experience the expected losses. With the new two-slab structure, it is anticipated that the government can recover any losses incurred," the sources added.

Maharashtra continues to lead other states in achieving the highest monthly GST collections. For the fiscal year 2024-25, Maharashtra ranked as the top contributor, generating nearly Rs 3.60 lakh crore, followed by Karnataka, Gujarat, Tamil Nadu, and Haryana, as per data from the GST Council.

Previously, Deputy Chief Minister Ajit Pawar urged traders during the winter session of the state legislature last December to capitalize on the Amnesty Scheme introduced by the state government, which waives interest or penalties related to State GST demands for the years 2017-18 and 2018-19.

The amnesty schemes were launched under section 73 of the Maharashtra Goods and Services Tax Act, 2017. The disputed amounts, including tax and penalties, totaled Rs 54,000 crore, comprising Rs 27,000 crore in disputed tax and Rs 27,000 crore in penalties.

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