Puducherry and Punjab have the highest GST revenue shortfall.

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

highest GST revenue

Most north-eastern states, including Arunachal Pradesh, Mizoram, Manipur, and Sikkim, have benefited from the implementation of the Goods and Services Tax (GST), with GST income collections exceeding the guaranteed annual 14% rise in states’ GST revenue by the Center.

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

The good news is that from FY21 to FY22, the income shortfall for every state has decreased. At the national level, the GST revenue gap decreased from 37.9% in FY21 to 27.2% in FY22.


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