Motor vehicles, spare parts bring Keralam highest GST revenue at ₹3,840 cr

Thiruvananthapuram: A major chunk of the state's Goods and Services Tax (GST) revenue comes from motor vehicles and spare parts sector, accounting for ₹3,840 crore in the first six months of the current financial year, from April to September.

Of the ₹19,583 crore collected by the state from 11 major sectors during the period, the motor vehicle sector alone contributed the highest share. Vehicles attract an average GST of 18 per cent, apart from the road tax levied on them. The figures underline the importance of the automobile industry to the state's revenue, although the government rarely compiles GST collections sector-wise.

Tourism and gold, despite their significant contribution to Keralam's economy, have not generated tax revenue proportionate to their economic activity. Contracts related to infrastructure development projects brought in ₹2,660 crore in GST, placing the sector second on the list. General trade establishments ranked third, contributing ₹2,593 crore.

Sales of electronic products generated ₹2,430 crore in GST, while banking, financial and insurance services contributed ₹2,120 crore.

The jewellery sector recorded the highest turnover among the sectors examined, at approximately ₹32,500 crore. However, its GST contribution stood at just ₹1,000 crore. Gold attracts a GST of only 3 per cent, while the department also faces difficulties collecting taxes from small-scale gold traders.

Similarly, hotels, restaurants and catering businesses recorded a turnover of ₹10,100 crore during the period, but contributed only ₹770 crore in GST.

The state tax department compiled the sector-wise figures as part of its efforts to explore changes in tax collection mechanisms and improve revenue mobilisation.