Economics
In News: The Goods and Services Tax (GST) yielded ₹1,48,995 crore in revenues during the month of July, the second-highest monthly collections since the launch of the GST regime and the highest in three months.
- July’s GST collection is 28% higher than the same month last year, driven by a 48% surge in revenues from import of goods, while revenues from domestic transactions, including import of services are 22% higher than a year ago.
Reasons
- High inflation rate, buoyancy in consumption patterns triggered by the economic recovery, alongside greater enforcement actions against anti-evasion activities have contributed to the rise in GST collections.
What do the improved revenues signify?
- Experts say that action against tax evaders, including steps being taken by state authorities, have resulted in better compliance and helped push the growth in GST collections along with economic recovery and higher inflation rate.
- It will help boost the government’s GST collections beyond the budgeted figures.
- After the end of the compensation regime for states in June 2022, the higher GST revenue growth is expected to ease the revenue concerns for some states going ahead.
Must Read: GST- Five years on + Centre and States have equal powers to make GST-related laws
Source: Indian Express
Previous Year Question
Q.1) What is/are the most likely advantages of implementing ‘Goods and Services Tax (GST)’? (2017)
- It will replace multiple taxes collected by multiple authorities and will thus create a single market in India.
- It will drastically reduce the ‘Current Account Deficit’ of India and will enable it to increase its foreign exchange reserves.
- It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future.
Select the correct answer using the code given below:
- 1 only
- 2 and 3 only
- 1 and 3 only
- 1, 2 and 3
