NOVEMBER A BLIP ON GST TREND, CONSIDER SIN TAX ON JUNK FOOD

GOODS and services tax collections are a good barometer of the Indian economy. It is also the foundation of the government’s capital expenditure.

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No wonder then that November’s GST collections created concern as it slowed to a year’s low of ₹1.7 lakh crore, down from ₹1.96 lakh crore the previous month. Year-on-year, too, the growth rate of 0.7 percent was the slowest since the pandemic. This was expected after the Union government’s consumer-friendly reforms in September shrank the GST levy on common goods to two slabs of 5 percent and 18 percent. Meanwhile, conscious of eroding revenue and the end of the GST compensation cess next year on ‘sin’ products like tobacco and pan masala, the government has rushed two Bills in the Lok Sabha to ensure tax income from these products