Which India’s states have the highest GST and how it affects life?

In the state of Uttar Pradesh, where the average monthly electricity bill has already climbed above Rs2,000 per month, a recent report by the National Institute of Public Finance and Policy (NIPFP) reveals the state’s GST is the highest in the country.

The state’s average monthly bill, the report said, rose to Rs2.3 lakh in 2016-17 from Rs2 lakh in 2013-14.

According to the report, the highest state rate for a typical household was Rs4,000 in Bihar, followed by Rs3,000 (Bihar), Rs2 (Haryana), Rs1 (Delhi) and Rs750 (Assam).

According the NIPFP report, most states in the north, where prices are lower, have GST rates that are between Rs2 and Rs2-3 lakh.

For a typical family, the average bill is around Rs1.7 lakh in Bihar and Rs1,3 lakh (UP) in Uttar Pradesh.

On a national level, the GST has increased steadily in the past five years.

In 2016-19, it rose from Rs4.1 lakh to Rs6.1 crore, and in 2017-18, it climbed from Rs6 lakh to $8.9 billion.

In states like Bihar and UP, the annual rise in GSTs is also much larger.

In Bihar, it increased from Rs1 lakh in 2014-15 to Rs8.2 crore in 2017.

UP is also one of the states with the largest increase in GTS, the NipFP said.

“In 2016-18 and 2017-19 and in 2021-22, the increase in the average GTS was Rs6,500 crore and Rs7,500 crores, respectively,” the report added.

India has been one of India’s fastest growing economies over the last decade, but the government has been slow to move on major reforms like the Goods and Services Tax (GST), which is expected to bring an end to a tax regime that has resulted in many small and medium enterprises (SMEs) losing business.

Despite the government’s efforts, a majority of states still face long-term challenges, the government noted.

There are over 4.7 crore households, or about 40 per cent of India, with a GST of more than Rs10,000, according to NIPFS data.

While the number of GTS households is relatively small, the burden of GST rises disproportionately in rural areas.