UP still gaining from Mahakumbh Event Effect: GST, VAT, and Fuel Sales Rise

The Prayagraj Mahakumbh was a 45-day-long grand ritual that commenced on January 13, 2025, and concluded on February 26, 2025. The event not only attracted 66 crore (660 million) pilgrims but also had a major positive impact on the economy of Uttar Pradesh.

This event generated an extra revenue source of Rs. 500 crore for the Uttar Pradesh government in the form of Goods and Services Tax (GST)/Value Added Tax (VAT) across sectors, as well as in fuel sales.

In accordance with the data collected from various media sources, the government has received revenue of Rs. 239.47 crore in the form of taxes only from a few sectors between January and February, related to the Mahakumbh.

Prayagraj alone earned Rs. 146.4 crore, the most among all zones. At the same time, Indian Oil Corporation said that petrol and diesel sales in the district went up by an average of 36.25% in January and February. This rise was mainly because of the increased movement of people and goods.

A senior state tax department officer said, “The Mahakumbh has contributed around Rs. 500 crore additional GST/VAT to the state exchequer, showing the scale of activities during the event.”

The increment in government revenue through taxation includes a few key sectors: railways, air travel, hotels, tent houses, advertising, and civic bodies. In Prayagraj, a total of Rs. 76.75 crore in tax receipts was received in February (it is the revenue of January paid in February) and Rs. 65.81 crore in the month of March (it is the revenue of February paid in March), in addition to TDS (Tax Deducted at Source) of Rs. 2.15 crore.

An officer said after examining the data, “Railways alone contributed Rs. 124.6 crore (Rs. 68.79 crore in February and Rs. 55.81 crore in March), while tent houses and advertising generated Rs. 9.38 crore, and the hotel sector Rs. 7.12 crore. Contributions also came from departments such as PWD and Nagar Nigam.”

If we discuss district-wise revenue collected, then Noida itself has collected a total revenue of Rs. 12 crore, majorly from hotels and online booking platforms, and Varanasi has collected Rs. 8.42 crore. Similarly, Ayodhya of Rs. 2.28 crore. The state has overall collected the air travel-related tax of Rs. 68.37 crore. It has been notified by the officers that Prayagraj-based entities are still pending to clear the TDS of Rs. 9.3 crore, anticipated to be cleared soon.

According to data from Indian Oil, fuel sales in Prayagraj went up sharply in January and February 2025. Petrol sales grew by an average of 60.72%, while diesel sales increased by 23.24% during these two months. Altogether, petrol and diesel sales rose by 11,809 kiloliters, which is a 36.25% increase compared to the same time last year.

Here’s a month-wise breakdown:

• In January, petrol sales went up from 5,253 KL to 7,157 KL, a jump of 1,904 KL (36.25%).
• In February, petrol sales rose from 6,058 KL to 11,022.50 KL, a huge increase of 4,964.50 KL (81.95%).
• Diesel sales in January rose from 10,204 KL to 12,428 KL, an increase of 2,224 KL (21.8%).
• In February, they went from 11,061 KL to 13,777.50 KL, rising by 2,716.50 KL (24.56%).

A senior IOC officer has uncovered, “To meet the surge in demand, Indian Oil operated 123 retail outlets (ROs) round-the-clock in and around Prayagraj and along key routes leading to the Kumbh venue. These outlets reported a growth of 59.4% in petrol sales and 14.8% in diesel sales during the Kumbh period.” Further said, “All 123 ROs offered essential amenities such as free drinking water, air, first-aid kits, and clean washrooms to support the massive inflow of pilgrims and vehicles.”