Significance of GST Revenue Collection
The GST revenue collection has a great significance, as the amount collected from the GST is being further used by the government for the development of the nation. In India, the government doesn’t have many sources to generate revenue. As only 6.25% of the Indian population does pay income tax, thus the collection of taxes through GST becomes quite important. Also, many economists believe that as the government’s tax revenue increases the economic growth of that nation also increases.
However, an increase in GST revenue collection can’t be always seen as an indicator of economic growth. As the government’s GST revenue collection increases its burden gets quite heavy on the pocket of the common man. However, the increase in tax collection also leads to development which indirectly benefits the taxpayers. Thus it’s quite important for the government to maintain the growth in the GST revenue collection.
GST Revenue Collection
Soon after introducing GST (Goods and service tax) in 2017, the major revenue collections observed a considerable hike, and the main reason behind it is that the centralization of all taxes made tax evasion difficult and bring in transparency to the Indian taxation system. Before the launch of GST, many taxes with different rates use to apply to different goods and services. Also, it has been observed that many sellers used to charge hidden taxes on certain goods and services. Thus GST proved to be a game-changing initiative by the central government resolving all the discrepancy in the taxation system.
The GST revenue collection for the month of May 2022 was around INR 1,02,485 Crores, which observed an overall increase of 40% from May 2021, when the GST revenue collection was INR 70,951 Crores.