The Delhi government's revenue in the first six months of the current financial year has exceeded Rs 22,000 crore, a notable increase compared to the nearly Rs 21,000 crore collected during the same period last year. This growth comes despite recent GST rate reductions on several items, suggesting a potential for even higher collections for the rest of the year.
Aiming for higher returns, the Delhi government has set an ambitious GST collection target of Rs 48,500 crore for this financial year, which is Rs 5,000 crore more than the previous year's target.
According to experts, the central government's significant reduction in GST rates on many items, which came into effect on September 22 (the first day of Navratri), has fostered a positive market environment. In Delhi, this has translated into a 16.15 per cent increase in SGST (State GST) revenue so far this year compared to the same period last year.
GST Collections Rise Despite Rate Cuts
Even in the month the rate cuts were implemented, GST collections saw an upward trend. In September of last year, Rs 3,272.55 crore was collected, while this year, September's collection stood at Rs 3,373.45 crore—a direct increase of over Rs 100 crore. Sources within the Delhi government indicate that these revenue figures are preliminary and are expected to rise further once the final data is compiled.
VAT Collections Continue To Decline
In contrast to the growth in GST, VAT (Value Added Tax) collection has seen a further decline this year. From April to September, the government received Rs 166 crore less in VAT revenue compared to the same period last year.
Those involved in the petrol and diesel trade attribute this decline to several factors:
- The increasing adoption of CNG and electric vehicles.
- The ban on 10-year-old diesel and 15-year-old petrol vehicles.
Diesel being cheaper in neighboring states like Chandigarh, Jammu & Kashmir, and Himachal Pradesh by Rs 3 to Rs 5 per litre. This incentivizes truck drivers carrying essential goods to refuel outside of Delhi.
Petrol pump operators have been consistently urging the central government to reduce the VAT on diesel in Delhi. They report that total diesel sales have already dropped by 8 per cent this year, causing financial losses for both them and the government.
Financial Data At A Glance
Revenue Comparison: April 1 to September 30
| financial year | VAT and CGST | SGST | Settlement | total revenue |
|---|---|---|---|---|
| 2024-25 | 3576.91 | 8667 | 8817.69 | 21,061.65 |
| 2025-26 | 3410.57 | 10,067 | 8965.21 | 22,443.21 |
(Note: All figures are in Crore Rupees)
Revenue Breakdown For FY 2025-26
From April 1 to September 30
- From GST: Rs 22,443.21 crore
- From Excise: Rs 4,192.86 crore
- From Vehicle Registration: Rs 7.60 crore
What Is SGST And CGST?
SGST (State Goods and Services Tax): This tax is applicable on intra-state transactions under the GST system. An intra-state supply refers to the supply of goods or services within the borders of a single state.
CGST (Central Goods and Services Tax): This consolidates all taxes previously levied by the central government, such as Central Excise Duty, central surcharges and cesses, and other central indirect taxes that were in effect before GST.
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