GST mop-up slows

THEY SAID THE surge demonstrates strong consumption uplift, stimulated by reduced rates and improved compliance behaviour.

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“It vindicates our strategy that reducing rates on essentials and mass-use sectors would create demand-side buoyancy - a Laffer Curve-type demand uplift,’ an official said.

On sectoral impact, the sources said growth has especially been strong in sectors where rate rationalisation was implemented, such as FMCG, pharma, foods products, automobiles, medical devices, textiles etc. According to the officials, the November collection (October transactions) have given them optimism that revenue and consumption boost strategies are going in the right direction. Analysts too said that increased consumption has likely offset the impact of rate cuts across a number of items.