Will GST revenue buoyancy continue for the rest of the Fiscal year 2024?

 

The GST collections trend in India upto June 2023 in FY23-24:

• April 2023: Rs. 1,87,035 crore (highest ever)
• May 2023: Rs. 1,57,079 crore
• June 2023: Rs. 1,61,497 crore

The average monthly gross GST collection for the first half of FY23-24 is Rs. 1,69,000 crore. This is 12% higher than the average monthly collection for the same period in FY22-23.

The GST collections have been consistently growing in the current financial year. This is due to a number of factors, including the strong growth of the Indian economy, the increasing compliance with the GST law, and the government's efforts to boost digitization and transparency in the tax system.

The average monthly gross GST collection for the first quarter of the FY 2021-22, FY 22-23 & FY 23-24 are Rs. 1.10 lakh crore, Rs. 1.51 lakh crore and Rs. 1.69 lakh crore respectively, the finance ministry said.

The gross revenue has crossed the 1.6 lakh crore mark for the fourth time since the inception of GST in the country.

With the Economy Budgeted to grow at a Nominal Growth rate of 10.5% in this fiscal, the GOI is confident of reaching its GST revenue targets comfortably, if the same momentum is sustained for the rest of the year.

The second half of the year will be crucial in that respect since the Global recession is expected to hit the country's imports and exports and consequently this will impinge on GST revenues.

GOI and RBI may have to work with Growth supporting measures at that time.Let us cross the bridge when we come to it!

(courtesy: TOI and The ET)

SC judgement on GST council and some random thoughts

 Mr.N.Venkatraman,Additional Solicitor General,GOI, has clearly brought the key aspects of this landmark judgment delivered by SC. The confusion stemmed from the attention-grabbing headlines made by media, stating GST Council recommendations are non-binding on Centre and States and have only persuasive value at the most.

The nuanced reading of this Judgment with its emphasis on cooperative federalism has not been clearly understood by opposition-ruled states like TN. Politicians ruling in the States rarely understand that Cooperative Federalism  is a multiway street.CF not only means harmony in the Centre-State relationship, but also means InterState harmony ( not at all seen even between contiguous States like TN,Kerala, Karnataka,AP)and  finally also means Intra-state harmony. When they keep harping on the point that States are not consulted by the Centre with respect to Indirect Taxation, they forget to what extent they do consult the Stakeholders like Industry and citizens before bringing in Changes in taxation within their realm say Property Tax,local Bodies Tax etc. within their States.

States lecture about Cooperative Federalism to the Centre only when it is convenient for them on issues that impinge on their rights and  ignore when it comes to bilateral or multilateral issues and shift the blame to the Centre. The concepts of 'give and take" and coordinated and synchronized functioning  with right balancing of their interests, are a must for a healthy and robust relationship between the various organs of the Union of India which is akin to functioning of a Human body.