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Not Only Inflation, Many Factors Behind Rise In GST
The New Indian Express
|May 03, 2024
Impact of inflation on revenue collection was subdued in 2023-24
| DIPAK MONDAL @ New Delhi AS the monthly GST collections surged past 2 lakh crore in April, the debate is over the reason for buoyancy seen in GST collections in the last few years with many attributing it more to the inflation than increased economic activities.
An analysis by the this paper , and its interaction with economists show inflation alone can't be attributed for growth of GST over the years. Growth in GST is mainly due to improved compliance, plugging of loopholes used for evading taxes and improved economic activities. Inflation helps in better tax collection, but in 2023-24, the impact of it was subdued.
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