Puducherry and Punjab have the highest GST revenue shortfall, shows data

The implementation of Goods and Services Tax (GST) has been a boon for most north-eastern states, such as Arunachal Pradesh, Mizoram, Manipur, and Sikkim, with GST revenue collections higher than the guaranteed annual 14 per cent increase in states’ GST revenue by the Centre. 

However, states like Puducherry, Punjab, Nagaland, and Uttarakhand have the highest revenue shortfall, which is met by GST compensation cess that is coming to an end on June 30. 

The good news is the revenue shortfall of all the states have narrowed from FY21 level to FY22 level. 

At the national level, the GST revenue shortfall has narrowed to 27.2 per cent in FY22 from 37.9 per cent in FY21.