INDIA’S GDP GROWTH BELIES ITS TAX COLLECTION SPURT
GST MOP-UP HITS RECORD DESPITE MODEST ECONOMIC OUTPUT
2022-09-05 13:01
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The country’s encouragingly high tax collections — indirect and direct — during the April-June quarter (Q1) of the current fiscal may have more to do with price and profit spurt than any magical growth of its economy and consumption. High wholesale and retail prices of consumables and industrial inputs are choking the growth of several sectors of the economy. The revised GST (goods and service tax) rates, which came into effect from July 18, are harsher at several mass consumption items. This is bound to impact the government’s future indirect tax collection growth and actual economic output.