Uttar Pradesh Leads State Tax Collections in April-July; Gujarat Tops Capital Expenditure

Uttar Pradesh has emerged at the top among various states in tax collections during the April-July period of the current fiscal year. According to data compiled by the Comptroller & Auditor General (C&AG), the state's total tax collection reached around ₹1.5 lakh crore, compared to approximately ₹1.37 lakh crore during the corresponding period of the previous fiscal year. However, Haryana recorded the maximum growth rate in tax collections at 18 per cent.

States' tax revenues consist of seven components: Goods & Services Tax (SGST), Stamps & Registration, Land Revenue, Sales Tax, State Excise Duty, State Share of Union Taxes, and other taxes and duties. Among these, SGST holds the maximum share. Data shows that collections from GST increased across all ten states analyzed in the report, driven by higher registration numbers and improved compliance, despite rate rationalization and the cessation of compensation.

Uttar Pradesh earned around ₹55,000 crore through SGST during the April-July period, up from ₹54,000 crore the previous year. Karnataka's revenue from GST reached approximately ₹35,000 crore compared to ₹31,000 crore, while Gujarat's collection rose to over ₹29,600 crore from around ₹22,700 crore. Tamil Nadu mopped up over ₹27,000 crore, up from over ₹22,000 crore. Data for Maharashtra for the April-July period of FY27 was not available.

GST portal data indicated nearly 8 lakh new taxpayer registrations. As of June 30, the total number of registrations reached 1.67 crore, compared to 1.59 crore on December 31, 2025. Uttar Pradesh led with over 22 lakh total registrations, followed by Maharashtra with over 20.5 lakh and Gujarat with over 14.3 lakh. During the first half period, Uttar Pradesh added over 2.54 lakh registrations, followed by Maharashtra with over 1 lakh and Gujarat with over 73,000.

In terms of capital expenditure, Gujarat led states with around ₹30,000 crore in spending, up from over ₹21,000 crore previously. Gujarat was followed by Uttar Pradesh with over ₹18,000 crore in spending, which is slightly lower than the previous year's figure of over ₹18,700 crore. However, Uttar Pradesh secured the highest amount under the Scheme for Special Assistance to States for Capital Investment (SASCI) during the first three and a half months of the current fiscal year, according to Finance Ministry data tabled in the Lok Sabha.

The annual allocation for the 50-year interest-free loan scheme for FY27 is ₹2 lakh crore. Parliament data showed that over ₹44,500 crore, or 22.27 per cent of the annual allocation, has been released. Uttar Pradesh received over ₹7,000 crore, followed by Madhya Pradesh and Uttarakhand. The scheme aims to assist states and union territories in boosting capital expenditure and promoting key reforms.

Regarding fiscal deficit relative to budget estimates, Gujarat led the table with 1.75 per cent, followed by Karnataka at 3.73 per cent, supported by strong revenue receipt growth. Meanwhile, Uttar Pradesh recorded a deficit of over 10 per cent of its budget estimates.

"The latest fiscal data highlights the crucial role that compliance and registrations play in driving state revenues, even amidst tax rate rationalizations. It is encouraging to see states actively participating in capital expenditure and utilizing central assistance schemes like SASCI to fund development. For businesses operating across state lines, understanding these regional revenue trends, taxpayer growth patterns, and fiscal health metrics is essential for long-term strategic planning and navigating India's dynamic economic landscape." — Dr. Shishir Gupta, Founder & CEO, StartupLanes