This November, the goods and services tax (GST) rose up to 6 per cent amounting to Rs 1.03 lakh crore which is the highest since April. The previous high recorded were up to Rs 1.14 lakh crore in April 2019 and Rs 1.06 lakh crore in March 2019.
Pratik Jain, leading the indirect tax practice at consulting firm PwC says that while increase in collection is encouraging, it’s difficult to read too much into the collection for one month, particularly because October was also a month of festivals. “We need to see what’s the trend. The government has taken steps in the right direction by simplifying the compliances, going after the tax evaders by more efficient use of technology/data analytics and not falling for temptation of increasing the tax rates. These efforts, coupled with introduction of e-invoicing from next year should lead to gradual increase in GST collections as well, though it would also depend upon overall economy,” he adds.
According to the data released, domestic demand manifested in central and state GST collections were strong, but an over 30 per cent fall in integrated GST on imports exerted pressure on overall collections. Higher automobile and white goods sales ahead of Diwali helped collections with the government hoping that good monsoon and rural demand will come to its rescue in the remaining part of the current financial year.