Govt eyes GST revenue growth rebound BSNL dials vendors for a fix as regulator flags weak signal

In the final days of the month,” one of the two people said. “People knew from 3 September that tax cuts would be effective from 22 September.”

- Jatin Grover

Data usage on BSNL's network has crossed 4 petabytes.

(MINT)

GST receipts in October reflect the sales in September. Since the tax cuts and price drops rolled out only on 22 September, many customers held off on purchases that month. Revenue collection in November will represent sales in October, the first month in which the full impact of the rate cut will be visible. It will be reported on 1 December.

Queries emailed to the finance ministry remained unanswered.

The finance ministry's 27 October monthly review said the GST reform would fuel domestic demand by easing the tax burden on consumers and businesses, spurring consumption and investment. The reforms primarily involved rationalizing the four-tier GST structure into two main slabs of 5% and 18%, alongside a 4.0% rate for luxury and sin goods.

The resilient GST collection trend is expected to support the government meet the fiscal deficit target of 4.4% for FY26, at a time when direct tax collection growth is lagging behind the required 16% annual growth rate to meet the ₹25.2 trillion annual target.

“So far, no state government has raised any revenue concern to the Centre after the implementation of the GST reforms. GST is the major source of revenue to states. Businesses have also passed on the benefit of tax rate cuts to consumers. It is a conspicuous boost to consumption,” the person added. “There is no big dent in GST revenue collections due to the tax cuts. In previous rounds of GST rate cuts too, revenue collections have picked up after the initial nominal moderation,” said the person.