Record GST collection
With slightly over ₹2.1 lakh crore of gross revenues, April month’s GST collection was 12.4% higher than the April 2023 tally of ₹1.87 lakh crore, which marked the highest monthly intake prior to the latest data set.
However, assuming the present momentum of the economy continues and GST revenue growth persists in last year’s 11%-12% range, last April’s high of ₹1.87 lakh crore could well be this year’s monthly average
Finance Minister Nirmala Sitharaman has termed last month’s ₹2 lakh crore-plus GST revenues a “landmark”, attributing them to a strong economy and efficient collections.
This should put to rest the Centre’s concerns from a few years ago that returns from the GST regime, now 82 months old, had been underwhelming.
No doubt, sustained action against frauds, such as fake invoicing, and stricter compliance norms have helped shore up revenues.
With central GST revenues overshooting last year’s targets, meeting the goals set in the interim Budget for 2024-25 now requires less than 10% revenue growth.
For the next government, the easy part would be to upgrade revenue targets in the full Budget.
The more critical imperative is to plan and execute the expansion of the GST net, and expedite the long-awaited reboot of its complex rate structure to make it a truly simple tax for consumers and investors, now that revenue worries are relatively muted.
Smart GST reforms, informed by stakeholder consultations, need to be at the forefront of the agenda of whoever comes into office after the elections, to correct anomalies that hold consumption back and set the foundations for the next virtuous cycle of investment and growth.
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