What does the rise in GST collection show?
Reportedly good news has come out for the indian economy. India's GST (Goods and services Tax) collection has increased by 8.5% to Rs 1.82 lakh crore in november 2024. Increasing GST collection means strength of the indian economy and acceleration in economic activities. According to the data released by the Finance Ministry, this november collection has taken the total GST collection from april to november to Rs 14.57 lakh crore.
Perhaps last month i.e. in october 2024 also, an increase of 9% was registered in GST collection. The total collection of october was Rs 1.87 lakh crore, which was the second largest collection till date. The boom in domestic sales and better compliance contributed significantly to this.
october collection
Central GST (CGST): ₹33,821 crore
State GST (SGST): ₹41,864 crore
Integrated GST (IGST): ₹99,111 crore
Cess: ₹12,550 crore
Increased GST collection gives the government an opportunity to invest more in development work. This can help improve basic services like roads, health, and education. Apart from this, high GST collection shows that demand and consumption is increasing in the economy. It is also evidence of growth in sales and services of companies. However, rising GST collection can also be a sign of inflation. Often companies pass on the burden of tax to consumers, which increases prices.