Last financial year, net goods and services tax (GST) collections (gross collections minus refunds) surged 13.4 per cent, outpacing the 9.6 per cent growth in nominal gross domestic product (GDP).
This financial year has also started strong, with the gross April mop-up soaring to record ₹2.1 trillion, the highest monthly haul since the levy was introduced in July 2017. The data spawned by this collection ecosystem has another, unintended benefit. It can throw light on private consumption, including at the state level.
GST is a consumption-based tax, accruing to the state where goods are consumed, as opposed to where they are produced. So, state-level GST data can indicate sub-national private consumption trends.
While private consumption is the biggest driver of demand in the Indian economy, the lack of high-frequency data on it makes monitoring a challenge. Interestingly, despite strong GST collection in FY24, the National Statistical Office's estimates show private consumption growth has trailed GDP growth.
This divergence could be because, in addition to consumption, formalisation and improved compliance are playing an important role in shaping GST collections. The number of registered GST taxpayers reached 15 million as of April 30, 2024, more than twice the 7 million in 2017. Compliance has improved as well. For instance, recently, evasions of more than ₹44,000 crore were detected between May 2023 and January 2024 under a government drive to crack down on non-existent registrations and fake invoices.
The collection-consumption tango
この記事は Business Standard の June 04, 2024 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Business Standard の June 04, 2024 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
Mid-year portfolio review: Trim equity exposure after surge
Enhance term cover if liabilities have increased; boost health coverage to match medical inflation
Perils of keeping surplus money in bank accounts
In the 1970s, Jack, a United States (US) citizen, wanted to marry Anna, a citizen of the Communist Soviet Union.
'Government unlikely to choose fiscal profligacy'
\"You will not lose money if you take a medium-to-long-term view of India.But in the short term, I am not comfortable, as the current rally is purely liquidity-driven,\" observes RAJ BHATT, chairman and chief executive officer of Elara Capital. In an interview with Sundar Sethuraman, Bhatt says India stands out globally because of its financial discipline. Edited excerpts:
The quiet achiever: Conservative by nature, bold in returns
UTI Money Market Fund, launched in April 1997, has consistently ranked in the top 30th percentile of the money market fund category in the CRISIL Mutual Fund Ranking (CMFR) for three consecutive quarters through March 2024.
Jubilant to deliver extra cheese on value, with slice of pizza recovery
Domino's Indian franchise gains steam as pizza outpaces burger rivals amid shifting market dynamics
They came, they conquered
After World T20 win, Indian cricket begins transition period with Sharma, Kohli and Jadeja announcing retirement from shortest format in international cricket
A milestone on bond street
India's entry into the global bond index is a great sentiment-booster, but much of it has already been factored in
BALANCING ACT
After a challenging year post-merger, HDFC Bank looks poised for a strategic path forward
Finance world's question to self: Too many regulators within?
From fintech to urban cooperatives, a host of industry associations have expressed interest in becoming self-regulatory organisations
Window opens to give urban cooperative banks an uplift
In many countries, cooperative credit societies - also known as credit unions - have established significant importance and presence.