Which Indian state leads in tax revenue growth?

Karnataka leads in state tax revenue growth for the April-November period of FY26.

Which state has the highest capital expenditure growth?

Gujarat has recorded the highest growth rate in capital expenditure among Indian states.

Why did SGST collection decrease in major Indian states?

SGST collection was affected by the post-GST rate rationalization implemented in September 2025.

Home / Business and Economy / Karnataka Leads Tax Revenue Growth, Gujarat Tops Capex

Karnataka Leads Tax Revenue Growth, Gujarat Tops Capex

4 Jan

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Summary

Karnataka leads in tax revenue growth, followed by Maharashtra and Uttar Pradesh.
Gujarat leads in capital expenditure growth, with Maharashtra and Karnataka also rising.
SGST collection was affected by recent post-GST rate rationalization in major states.

Karnataka Leads Tax Revenue Growth, Gujarat Tops Capex

During the April-November period of Fiscal Year 2025-26, Karnataka demonstrated the highest growth rate in state tax revenue, excluding union taxes. Maharashtra and Uttar Pradesh followed closely in this metric. Concurrently, Gujarat led the nation in capital expenditure increases, with Maharashtra and Karnataka also recording significant growth in their spending on infrastructure development.

The positive tax revenue growth in states like Karnataka, Maharashtra, and Uttar Pradesh was somewhat tempered by a slowdown in State Goods and Services Tax (SGST) collections. This deceleration is attributed to the post-GST rate rationalization implemented in September 2025, a trend observed across most major states. However, revenue from other sources, such as State Excise duty, showed improvement.