Haryana’s GST collections have seen remarkable growth over recent years, firmly establishing the state as the fifth-largest contributor to India’s Goods and Services Tax revenue. This robust performance is largely propelled by the city of Gurgaon, which stands out as a key economic engine, contributing about 25% of Haryana’s total GST collections. The surge in GST not only reflects the state’s expanding economic landscape but also highlights effective tax administration and reform measures.
Haryana’s Impressive GST Growth Trajectory
In the fiscal year 2024-25, Haryana’s gross GST collection reached Rs 1.19 lakh crore, marking a 16% increase compared to the previous year. The net State GST (SGST) collection, a critical component of the state’s revenue, rose to Rs 39,743 crore—more than double the Rs 18,910 crore recorded in 2018-19. Specifically, SGST revenue grew by nearly 15% from Rs 20,000 crore in 2023-24 to Rs 23,285 crore in 2024-25. The first quarter of the 2025-26 fiscal also showed continued momentum, with SGST (including Integrated GST settlements) reaching Rs 11,400 crore, up 17% from the previous period.
Sector-Wise Contributions Fueling Haryana’s GST Success
- Services Sector: This sector leads GST contributions in Haryana, underpinned by a diverse range of industries including information technology (IT) and IT-enabled services (ITeS), financial services, trade, hospitality, communication, transportation, and real estate. Services account for more than 50% of Haryana’s Gross State Value Added (GSVA), growing annually at around 8-9%. The rapid expansion of Gurgaon’s IT parks, corporate offices, and service-based industries significantly boosts GST revenue.
- Manufacturing Sector: Supporting the state’s industrial backbone, manufacturing contributes about one-third (roughly 33%) of Haryana’s economic output. Key industrial areas such as Gurgaon, Faridabad, and Panipat are hubs for production, contributing substantially to GST collections through both domestic sales and exports.
- Trade and Corporate Hubs: Gurgaon’s rising prominence as a commercial center is a major GST driver. The city’s booming corporate sector, along with increasing demand for premium residential projects, generates high volumes of taxable transactions, accounting for a significant portion of the state’s GST intake.
- Excise Duty and VAT Contributions: Managed by Haryana’s excise and taxation department, excise duty combined with VAT and SGST forms over 80% of Haryana’s tax revenue. These indirect taxes play a critical role in enhancing the state’s fiscal strength.
District-Level GST Distribution Highlights
The district-wise distribution shows Gurgaon as the largest contributor, accounting for about 45% of Haryana’s total GST revenue. It is followed by Faridabad with approximately 20%, and Panipat contributing around 7-8%. Collectively, these three districts generate more than 65% of the state’s GST collections, underscoring their pivotal economic roles.
Impact of GST Reforms on Haryana’s Revenue Efficiency
The nationwide GST reforms, including the consolidation to just two primary tax slabs—5% and 18%—have greatly simplified tax compliance. This has curtailed tax evasion and brought a vast number of small and medium enterprises into the formal economy. Enhanced digital tracking of transactions, improved enforcement, and increased taxpayer awareness have collectively contributed to healthier GST inflows for Haryana.
Economic Significance and Future Outlook
Haryana’s growing GST collection reflects a healthy and dynamic economy that is adaptable to reforms and digital transformation. Gurgaon’s role as an IT and corporate powerhouse continues to attract investments, driving economic growth and tax revenues. The state government’s focus on expanding industrial development, boosting service industries, and streamlining tax compliance is expected to sustain this growth trend in the coming years.
Frequently Asked Questions (FAQs)
What was Haryana’s total GST collection in 2024-25?
Haryana’s gross GST collection reached Rs 1.19 lakh crore in 2024-25, registering a 16% increase over the previous year.
Which sectors contributed most to Haryana’s GST revenue?
The services sector, including IT/ITeS and real estate, led GST contributions, followed by manufacturing and trade activities.
How much does Gurgaon contribute to Haryana’s GST?
Gurgaon accounts for roughly 25% of Haryana’s total GST collections, driven by its expanding IT, corporate hubs, and premium housing markets.
What recent GST reforms have impacted Haryana’s revenue?
Simplified GST slabs of 5% and 18%, enhanced digital compliance, and reduced tax evasion underpinned the growth in Haryana’s tax collections.
Are there specific districts in Haryana driving GST growth?
Yes, Gurgaon, Faridabad, and Panipat contribute around 65% of the state’s GST revenue collectively.
How have tax compliance measures influenced Haryana’s GST collections?
Improved digital transaction tracking and increased formalization of businesses have helped increase compliance and boost GST revenue.