GST growth cools, but Indians are spending more

government's strategy that cheaper essentials and mass-use items will raise demand as predicted by the Laffer Curve theory, the second official said, referring to the economic idea that moderate tax rates can boost economic activity and tax revenue.

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"These trends confirm that next-gen GST reforms have not disrupted revenue stability, and that consumption-side buoyancy has begun to translate into higher taxable value in key sectors,” the official added.

“It is essential to note that the gross GST collections(excluding compensation cess) have largely remained the same as the same month last year, indicating that the loss on account of rate reductions have been compensated by higher consumption, although not at the expected scale,” explained M.S. Mani, a partner at Deloitte India.