GST COLLECTIONS

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Context

• Gross Goods and Services Tax (GST) collections rose to Rs 1,51,718 crore for October (for sales in September), the second highest level since the roll-out of the indirect tax regime in July 2017- Finance Ministry.

Factors contributing to the growth in collections

• The high inflation rate, increase in retail prices of many consumer goods, the festive season demand, and actions taken to ensure compliance supported the rise in GST collections.
• GST revenues have picked up with the onset of the festive season. At least 12 states/UTs recorded a higher than 20 per cent growth in GST collections in their regions.

Implications

• High GST collection proves the fact that GST has now settled, proper systems are in place and compliance level has increased substantially.

Must Read: https://www.iasgyan.in/daily-current-affairs/goods-and-services-tax-gst

https://indianexpress.com/article/explained/gst-collection-in-october-second-highest-ever-causes-significance-8242649/