Tax hierarchy sees reshuffle as Odisha, Telangana take unexpected leads

Smaller states such as Odisha and Telangana are emerging as the fastest-growing contributors to GST and direct taxes, challenging the long-held dominance of India's traditional economic powerhouses

A shift appears to be underway in India’s tax landscape, with smaller states such as Odisha and Telangana emerging as the fastest-growing contributors to indirect and direct tax collections, respectively, challenging the long-standing dominance of traditional economic powerhouses such as Maharashtra, Karnataka, Gujarat and Tamil Nadu.

 

An analysis of 28 states and the national capital region (NCR) of Delhi revealed that among the states whose direct or goods and services tax (GST) collections crossed the Rs 5,000 crore mark, Odisha leads in GST collection growth with a compound annual growth rate (CAGR) of 22.4 per cent between FY18 and FY25,