LUCKNOW, Aug. 6 -- After months of sluggish performance, Uttar Pradesh's GST collection finally showed signs of recovery in July, clocking Rs 9,760 crore, a 7% increase over the same month last financial year (2024), the latest data released by the Goods and Services Tax Network (GSTN) suggests. This is the first time in the current fiscal that UP has registered a positive year-on-year growth in GST revenue. June witnessed a drop in GST growth by 4%, triggering massive concern in the government. The state tax department even launched a statewide campaign to identify possible causes, which are yet to be identified. But despite this turnaround, the state's cumulative GST growth for the fiscal year so far (April-July) remains in the negative, showing the challenges that the government may have to face in the months to come. UP's cumulative pre-settlement and post-settlement GST growth from April to July stands at -2%. "UP, one of the country's top five GST contributors, had been witnessing either flat or negative growth in monthly GST collections during the first quarter. The July rebound has offered some respite, but may not be enough to compensate for the lag in previous months, especially June," a tax department official said. As per the data released by the GSTN on July 1, nationally, GST collections in July touched Rs 1.96 lakh crore, marking a 7.5% year-on-year growth. In absolute GST collections, Maharashtra led with Rs 30,590 crore, followed by Karnataka, Tamil Nadu and Uttar Pradesh. UP's July growth matches the national average and nearly at par with that of the biggest contributors Maharashtra and Karnataka. However, compared to states like Madhya Pradesh (+18%) and Bihar (+16%), Uttar Pradesh's 7% growth appears modest. As another official put it, "The July figure is encouraging, but we can't celebrate just yet. This needs to become a trend." The July revenue is the tax paid in June. "We can expect the GST collection to grow in the festive months of October and November," he said. With eight months left in the financial year, UP has limited time to go back to positive cumulative growth. The real test will be whether the state can maintain momentum through the festival season and beyond....