Maha Kumbh helped UP notch up ₹10,000 cr in March GST collections

Helped by vast attendance of devotees at the Mahakumbh in Prayagraaj, GST collections in Uttar Pradesh rose to an 11-month high of around ₹10,000 crore in March, government data showed on Tuesday. ( 1 AP ‘ 25)

Collections in March boosted the average mop up in January-March quarter. Though record collection in April last fiscal pushed the average monthly collection to over ₹10,300 crore during April-June quarter of FY25, it dipped to around ₹8,400 crore and ₹9,000 crore in July-September quarter (Q2 of FY25) and October-December quarter (Q3 of FY25). However, in the last quarter (Q4 of FY25), it was over ₹9,500 crore.

According to Vivek Jalan, Partner at Tax Connect Advisory Services LLP, the UP economy was slumping on single digit growth from July to December 2025 in five out of six months. “The Maha Kumbh festival in UP has helped the State gain double digits growth of around 12.5 per cent on an average in January to March period,” he said, adding, “It remains to be seen whether UP can sustain the growth momentum after the Kumbh.”

Though terming ₹9,956 crore collection with around 10 per cent growth as “solid”, Sivakumar Ramjee, Executive Director- Indirect Tax, Nangia Andersen LLP, felt that it was more in line with general GST trends than an astronomical rise courtesy the holy event. He did not see the GST windfall as dramatic. “A large chunk of Kumbh-related spending happened in sectors that don’t exactly ‘click’ with the taxman. Think small street vendors, food stalls, and religious offerings — none of which pay GST. Even the high demand for fuel and alcohol didn’t help much, as those are taxed at the State level, not under GST,” he said. “Sure, tourism and hospitality saw a boost, but they didn’t quite manage to fill the tax coffers to overflowing. In the grand scheme, the Kumbh’s impact on infrastructure and long-term tourism growth might outshine the immediate tax gains,” he added.

Meanwhile, FY25 overall ended with Goods and Services Tax (GST) collections reaching rising to ₹1.96 lakh crore in March. This is the second-highest collection till date, reflecting showing a growth of around 10 per cent as compared to March of Fiscal Year 2023-24.