Prayagraj's Economic Surprise: GST Collections Surge During Magh Mela
The historic Sangam city of Prayagraj has delivered a remarkable economic performance this year, registering a significant increase in Goods and Services Tax (GST) collections during the Magh Mela period. According to data from the state commercial tax department, the Prayagraj zone witnessed substantially higher GST collection in January 2026 compared to the same month last year, when the Maha Kumbh was held.
Impressive Growth Figures
Prayagraj achieved a GST growth rate of 8.83% during this period, comfortably exceeding the national average growth of 6.2%. This robust performance highlights the city's expanding commercial activity and economic vitality. In concrete terms, GST collection in the Prayagraj zone rose from Rs 262.72 crore in January 2025 to Rs 285.91 crore in January 2026.
What makes this particularly noteworthy is that this growth occurred during the Magh Mela period rather than the Maha Kumbh year, indicating sustained economic momentum beyond major religious events.
Factors Driving the Growth
Economic experts attribute this substantial increase to multiple factors:
- Increased business transactions during the Magh Mela, which attracts millions of pilgrims annually
- Boosted trade across multiple sectors including hospitality, transportation, retail, and various services
- Greater adoption of digital payment systems among businesses and consumers
- Improved billing practices and enhanced tax compliance mechanisms
Senior tax and financial advisor Pawan Jaiswal provided additional insight, noting that apart from Magh Mela-related economic activity, there was substantial billing in the gold and silver trade in recent weeks, which contributed significantly to GST revenue. He emphasized that better awareness among traders about proper invoicing and tax reporting procedures has strengthened overall collections.
Regional Performance Context
The Prayagraj zone emerged as one of the leading performers in Uttar Pradesh in terms of GST growth. While Gautam Budh Nagar (Noida) topped the state with an impressive growth rate of 13.13%, Prayagraj secured the fourth position with its 8.83% growth. This achievement is particularly notable given the predominance of religious events during this period.
The complete ranking shows Bareilly in second place with 12.17% growth, followed by Etawah at 9.98%, while Saharanpur stood fifth with 7.89% growth. Overall, Uttar Pradesh recorded a GST growth of 1.11% during this period.
Historical Growth Trajectory
A review of historical data reveals Prayagraj's steady upward trajectory in GST collections:
- 2020: Rs 143.82 crore
- 2021: Rs 144.71 crore
- 2022: Rs 161.44 crore
- 2023: Rs 172.37 crore
- 2024: Rs 178 crore
- 2025: Rs 262.72 crore
- 2026: Rs 285.91 crore
This consistent growth pattern demonstrates the region's economic resilience and the increasing formalization of trade activities. Government officials view this rise as a positive signal for the region's economic development and its capacity to generate revenue even outside major festival periods.
The combination of religious tourism, improved compliance mechanisms, and diversified economic activity has positioned Prayagraj as a significant contributor to Uttar Pradesh's tax revenue, with potential implications for future infrastructure and development projects in the region.
