Maharashtra Chief Minister Devendra Fadnavis on Wednesday, 1 July declared that Maharashtra leads all Indian states in Goods and Services Tax (GST) collection and also receives the highest quantum of Central Government benefits in return — making it, in his words, the 'GST capital of India'. He was speaking at the 9th GST Day celebrations in Mumbai.

Maharashtra's GST Standing

Fadnavis stated that Maharashtra received a GST return of ₹1,87,000 crore in the previous financial year, underscoring the state's outsized contribution to national indirect tax revenues. He attributed this performance partly to Maharashtra's status as the country's leading services economy, noting that the inclusion of services under the GST regime has particularly benefited the state.

He also announced that Maharashtra is the first state in India to deploy an Artificial Intelligence-based system to detect and curb tax evasion — a step he described as a significant leap in tax administration modernisation.

GST as a Historic Reform

Terming GST a landmark financial overhaul, Fadnavis said the framework of 'One Nation, One Tax, One Market' had transformed India into a society of honest indirect taxpayers. He called it 'one of the largest financial reforms in the world', achieved by consolidating a web of multiple indirect taxes into a single structure.

He credited Prime Minister Narendra Modi with breaking a long-standing political deadlock on GST implementation. 'For a long time, efforts were underway to build a consensus among states regarding GST, but these ideas remained limited to discussions. Previously, both the administration and traders faced heavy pressure due to multiple indirect tax filings and the challenges of stopping tax evasion, which hindered the growth of trade and industry. However, under the firm leadership of Prime Minister Narendra Modi, the historic decision to implement GST was successfully taken,' Fadnavis said.

Centre's Role and the GST Council

The Chief Minister recalled that states initially faced revenue uncertainty under the GST transition. The Centre responded by guaranteeing compensation for any shortfalls, committing to a 14 per cent annual growth rate in GST compensation for the first five years — a provision he described as a critical milestone in ensuring state buy-in.

Fadnavis also highlighted the role of the GST Council, noting that no decision can be finalised without mutual agreement between the Centre and state governments, making it a transparent and consultative mechanism. The Council has progressively lowered tax slabs on daily-use items and goods essential to Micro, Small, and Medium Enterprises (MSMEs).

GST 2.0 and Digital Infrastructure

Looking ahead, Fadnavis pointed to the Centre's launch of the 'GST 2.0' phase, aimed at making the system more robust and efficient. He also praised the Goods and Services Tax Network (GSTN) as one of the most significant examples of digital innovation in the 21st century, describing it as the structural backbone that enables seamless tax deposit into the exchequer within the GST framework.

Event Highlights

The event was addressed by State GST Commissioner Ashish Sharma, who delivered the introductory remarks, and Chief Commissioner of Central GST Prachi Swaroop, who also shared her perspectives. Chief Minister Fadnavis felicitated outstanding taxpayers and tax officials during the ceremony. With GST 2.0 underway and AI-driven compliance tools already operational in Maharashtra, the state appears positioned to deepen its lead as India's top GST contributor in the years ahead.