Daijiworld Media Network - Panaji

Panaji, Apr 2: Goa’s Goods and Services Tax (GST) collections for 2025–26 have recorded a 2.1% decline, signalling a loss of fiscal momentum even as the state’s taxpayer base continues to expand.

According to data released by the Union Finance Ministry, total GST collections in the state stood at Rs 6,950 crore for the financial year ending March 31. This comes at a time when national GST revenues grew by 6.4%, highlighting a widening gap between Goa and the broader economic trend.

Of the total collections, the Goa government retained Rs 4,575 crore, reflecting a marginal growth of just 1%, while the remaining amount was transferred to the Centre’s treasury. The data indicates uneven performance across tax streams, with central tax formations in Goa registering a sharper decline of 6.1%, while state formations saw a modest increase of 0.7%.

March collections offered limited relief, with the state earning Rs 396 crore post-settlement compared to Rs 378 crore in March last year, largely attributed to peak tourism activity.

However, officials noted that a single month’s improvement is insufficient to offset the broader annual slowdown.

After years of near double-digit growth, Goa’s GST trajectory has weakened significantly. When adjusted for the state’s 4.4% inflation rate during April–December 2025–26, the data suggests a real contraction in economic activity, with both the volume and value of taxable transactions declining.

The state had previously seen strong growth, with combined IGST and SGST collections rising from Rs 1,985 crore in 2020–21 to Rs 4,424 crore in 2024–25. Growth rates have steadily fallen—from 28% in 2022–23 to 15% in 2023–24, 9% in 2024–25, and now just 1% in 2025–26.

Officials attribute much of the decline to the complete phase-out of GST compensation provided during the pandemic. Goa had received Rs 1,651 crore in compensation during Covid-19 years, with a final adjustment of Rs 164 crore in 2024–25, marking the end of the compensation regime introduced in July 2017.

Despite the slowdown, the state’s taxpayer base has expanded to 49,597 registered commercial entities as of March 31, indicating formalisation of the economy continues.

However, policymakers are likely to focus on the growing disparity between Goa’s declining GST collections and the national growth trend, raising concerns about the state’s fiscal resilience and its share in the redistributed IGST pool.