{"id":160943,"date":"2022-01-12T20:30:13","date_gmt":"2022-01-12T15:00:13","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=160943"},"modified":"2022-01-13T09:31:29","modified_gmt":"2022-01-13T04:01:29","slug":"how-real-is-the-gst-boost","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/how-real-is-the-gst-boost\/","title":{"rendered":"How real is the GST boost?"},"content":{"rendered":"\n<p><strong>News: \u00a0<\/strong>The government is delighted over the steady improvement in the collection of goods and services tax (GST) in recent months<\/p>\n<p>GST collections have crossed the Rs 1-trillion mark for each of the last six months beginning July 2021.<\/p>\n<p>The buoyancy in GST collections provides the much-needed revenue cushion to government finances and for preparing the next year\u2019s Budget.<\/p>\n<p>However, an analysis of GST tax collection over a three-year period reveals that the share of GST collections in GDP is not a cause for any excitement.<\/p>\n<p>Because, from 6.22 per cent of GDP in 2018-19, it fell for two consecutive years to 6 per cent in 2019-20 and 5.75 per cent in 2020-21.<\/p>\n<p>The ratio of GST to GDP is the true indicator of measuring how tax revenues have kept pace with the economy\u2019s growth.<\/p>\n<p><strong>What are the other issues related to GST collection?<\/strong><\/p>\n<p>GST collections take place under four broad categories: Central GST (CGST), State GST (SGST), Integrated GST (IGST) and Compensation Cess. There is the need for specific administrative as well as policy interventions in each of these areas.<\/p>\n<p><strong>First, the issue of slower growth in SGST<\/strong> owing to the inefficient tax collection machinery that many states may be burdened with.<\/p>\n<p><strong>Second, the issue of lower growth rate in IGST collections<\/strong> on inter-state supplies. On the contrary, IGST for imports has increased.<\/p>\n<p><strong>Possible reasons for higher growth in<\/strong> <strong>IGST collections: <\/strong>Rise in India\u2019s imports, higher tariffs, Ease of tax collection at ports.<\/p>\n<p><strong>Third, the issue of stagnation in the collection of compensation cess.<\/strong><\/p>\n<p><strong>Source:<\/strong> This post is based on the article \u201c<strong>How real is the GST boost?\u201d<\/strong> published in <strong>Business Standard<\/strong> on 12<sup>th<\/sup> <strong>Jan<\/strong> 2022.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>News: \u00a0The government is delighted over the steady improvement in the collection of goods and services tax (GST) in recent months GST collections have crossed the Rs 1-trillion mark for each of the last six months beginning July 2021. The buoyancy in GST collections provides the much-needed revenue cushion to government finances and for preparing&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/how-real-is-the-gst-boost\/\">Continue reading <span class=\"screen-reader-text\">How real is the GST boost?<\/span><\/a><\/p>\n","protected":false},"author":10316,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[10503,216],"class_list":["post-160943","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-business-standard","tag-gs-paper-3","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704929189},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/160943","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10316"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=160943"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/160943\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=160943"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=160943"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=160943"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}