Editor's Pick: Rising GST revenue

India’s gross revenues from the Goods and Services Tax (GST) in August were 28% higher than a year ago. Revenues from import of goods increased by 57% and revenue from import of services were 19% higher than in August 2021. For the sixth consecutive month, India’s gross revenues from GST crossed the Rs. 1.4 lakh crore mark, the Finance Ministry said. The increase in GST collections shows the clear impact of various measures taken by the GST Council to ensure better compliance and also indicates economic recovery from the pandemic, it said. There is revival in consumption, elevated inflation and improved compliance. However, on a sequential basis, gross revenues of GST in August were 3.6% lower than July’s collection (Rs. 1,43,612 crore in August versus Rs. 1,48,995 crore in July). There were variations across States with 13 States seeing a higher growth in revenues, three reporting negative growth and 14 States seeing a slower uptick than 19%. While the rise in GST revenues has been termed by the government as a sign of economic recovery and greater compliance, economists have pointed out that the runaway pace of price rise is also responsible for this. Thus, the rise in GST collection should not be confused with an increase in consumption. The rise in prices, they have said, is the single most important factor for increased revenues apart from higher imports, compliance tweaks and a boom in the consumption of high-end goods. While the increase in GST revenues is good news, the numbers are being viewed by many cautiously given the uneven distribution of revenues across States and rising prices. GST collections viewed alongside the latest GDP estimates indicate that the economy is still in search of a firmer footing and that is why this is the top pick of the day. Was this newsletter forwarded to you? Head over to our newsletter subscription page to sign up for Editor‘s Pick and more. Click here The Hindu Editorials A revert to the mean: On violent crimes and the pandemic Slow improvement: On first quarter GDP growth The Hindu’s Daily Quiz According to the Consumer Price Index data so far in 2022 for urban and rural areas, which State recorded the highest retail inflation of 8.32%? Punjab West Bengal Uttar Pradesh Telangana [logo] Editor's Pick 02 SEPTEMBER 2022 [The Hindu logo] In the Editor's Pick newsletter, The Hindu explains why a story was important enough to be carried on the front page of today's edition of our newspaper. [Arrow]( [Open in browser]( [Mail icon]( [More newsletters]( Rising GST revenue India’s [gross revenues from the Goods and Services Tax (GST)]( in August were 28% higher than a year ago. Revenues from import of goods increased by 57% and revenue from import of services were 19% higher than in August 2021. For the sixth consecutive month, India’s gross revenues from GST crossed the Rs. 1.4 lakh crore mark, the Finance Ministry said. The increase in GST collections shows the clear impact of various measures taken by the GST Council to ensure better compliance and also indicates economic recovery from the pandemic, it said. There is revival in consumption, elevated inflation and improved compliance. However, on a sequential basis, gross revenues of GST in August were 3.6% lower than July’s collection (Rs. 1,43,612 crore in August versus Rs. 1,48,995 crore in July). There were variations across States with 13 States seeing a higher growth in revenues, three reporting negative growth and 14 States seeing a slower uptick than 19%. While the rise in GST revenues has been termed by the government as a sign of economic recovery and greater compliance, economists have pointed out that the runaway pace of price rise is also responsible for this. Thus, the rise in GST collection [should not be confused with an increase in consumption](. The rise in prices, they have said, is the single most important factor for increased revenues apart from higher imports, compliance tweaks and a boom in the consumption of high-end goods. While the increase in GST revenues is good news, the numbers are being viewed by many cautiously given the uneven distribution of revenues across States and rising prices. GST collections viewed alongside the latest GDP estimates indicate that the economy is still in search of a firmer footing and that is why this is the top pick of the day. Was this newsletter forwarded to you? Head over to our newsletter subscription page to sign up for Editor‘s Pick and more. [Click here]( The Hindu Editorials [Arrow][A revert to the mean: On violent crimes and the pandemic]( [Arrow][Slow improvement: On first quarter GDP growth]( The Hindu’s Daily Quiz According to the Consumer Price Index data so far in 2022 for urban and rural areas, which State recorded the highest retail inflation of 8.32%? - Punjab - West Bengal - Uttar Pradesh - Telangana Today’s Best Reads [[U.S. changes focus to long-term residency for more Afghans] U.S. changes focus to long-term residency for more Afghans]( [[The real and fiction in Ponniyin Selvan] The real and fiction in Ponniyin Selvan]( [[Kakkan, an epitome of simplicity and integrity] Kakkan, an epitome of simplicity and integrity]( [[A living symbol of harmony and syncretism] A living symbol of harmony and syncretism]( Copyright @ 2022, THG PUBLISHING PVT LTD. If you are facing any trouble in viewing this newsletter, please [try here]( If you do not wish to receive such emails [go here](