What is the news about?
The recent trends in GST revenue indicates that the recovery is neither smooth nor fast
What is the progress of GST revenue collection?
- With gross revenues of Rs. 1.12-lakh crore in August, the GST has now yielded over Rs. 1-lakh crore a month for almost a full year
- The August collections are 30% higher and also 14% above the pre-pandemic levels of 2019-20
- It pertains largely to economic activity in July and the ease in mobility restrictions in most States
- While revenues from domestic transactions were up 27%, key industrial States saw faster growth, including Karnataka, Tamil Nadu and Maharashtra.
Is this an indicator of faster economic growth?
- GST revenues in August are almost 4% lower than the Rs. 1.16-lakh crore collected in July
- Government stopped disclosing the number of those who are filing returns each month from February 2021
- Even State-wise revenues have been selectively shared recently
- It is unclear if the economy is recovering ‘fast’ in tandem with the easing out of COVID-related restrictions
- Reserve Bank of India Governor has highlighted that the economy is still delicately poised-manufacturing recovery has stumbled in August and services remain stressed.
Source: The Hindu
