Blurred signal: The Hindu editorial on missing points in 2022 October GST data

October saw the yield of Goods and Services Tax (GST) Second highest gross monthly revenue – a little less than ₹1.52 lakh crore. This is the eighth consecutive month of GST collections exceeding Rs 1.4 lakh crore, in which Record ₹1,67,540 crore in April, The finance ministry stressed that domestic transactions also contributed to the second highest number of taxes in the month. Highlighting October’s GST inflows, 8.3 crore e-way bills were generated in September, which the ministry described as “significantly higher” than August’s 7.7 crore bills. The onset of the festive season certainly gave a boost to consumption as well as being stocked by vendors. The government, which has regularly placed GST revenue as a benchmark of strong post-pandemic economic activity, had ample reason to talk the latest numbers. For example, April’s record revenues reflected a sharp recovery, and while May revenues declined sequentially, the government argued that the fiscal year ending March boosted April’s tax kitty. was. Some of the jump in October revenue could be due to taxpayers filing quarter-end returns alike.

It is noteworthy that no such comment was included in the latest GST revenue statement, which has chosen to leave it out instead of being disclosed. The ministry has left out basic regularly shared data, such as the year-on-year growth rate for overall collections, and a clear break-up of growth in revenue from domestic transactions (usually imposed on imports of services). taxes) and import things. These numbers can be estimated to some extent. Imports of goods have grown at a much lower pace in recent months than the integrated GST and GST cess collections, rising 13% and 18% respectively – a great sign for an economy seeking to rein in a runaway import bill. . Maybe the 16.6% increase in total revenue from October 2021 – the lowest growth rate since April’s record kitty – prompted this reticence. But as economists point out, the growth rate will moderate due to simple base effects. Another factor could be the 2.7% sequential growth in revenue despite a 7.8% increase in e-way bills month-on-month. But if inflation is eating away at consumption, it will show up in one way or another. Rather than divulging figures, the government would be better served by accelerating reforms to increase revenue. The GST Council, which was supposed to roll out some of these reforms in early August, should be convened quickly. Debating the big picture doesn’t help anyone.