Chhattisgarh Recorded the Highest GST Growth Rate

• 04 Jul 2025

Why in News? 

Chhattisgarh topped the country in Goods and Services Tax (GST) collection growth, posting an 18% increase over the previous fiscal year 2024-25.

Key Points 

• Factors Behind Chhattisgarh’s GST Growth: 
  • Growth in GST Collections: 
    • Chhattisgarh's total GST and VAT (Value Added Tax) revenue for FY 2024–25 reached Rs 23,448 crore, accounting for nearly 38% of the state’s own tax collections.  
      • VAT: Tax on goods sold, applied at each stage of the supply chain. It is imposed on goods that are excluded from the GST regime like alcoholic beverages, petroleum products etc. 
    • This sharp increase in tax revenues highlights the effectiveness of its policy measures and enforcement strategies. 
  • Streamlined GST Registration Process: 
    • One of the key reforms that contributed to this success is the reduction of GST registration time from 13 days to just 2 days, significantly improving the ease of doing business in Chhattisgarh 
  • Technology-Led Monitoring and Enforcement: 
    • The state has employed advanced technology to monitor and recover evaded taxes.  
    • Targeted drives and enhanced enforcement actions, such as the establishment of GST offices across all 33 districts, have ensured transparency and better taxpayer services.

Goods and Services Tax (GST) 

• About:  
  • GST is a value-added tax system that is levied on the supply of goods and services in India. 
  • It is a comprehensive indirect tax that was introduced in India on 1st July 2017, through the 101st Constitution Amendment Act, 2016, with the slogan of ‘One Nation One Tax’. 
• GST Council: 
  • About: The GST Council, a constitutional body under Article 279-A (101st Amendment, 2016), makes recommendations on GST implementation.  
    • GST is a value-added (Ad Valorem) and indirect tax system that is levied on the supply of goods and services in India.  
  • Members: The Council includes the Union Finance Minister (Chairperson), Union Minister of State (Finance), and a finance or any other minister from each state.  
  • Nature of Decisions: In the Mohit Minerals case, 2022, the Supreme Court ruled GST Council recommendations are not binding, as Parliament and states have simultaneous legislative powers on GST.