Key Points
The goods and services tax (GST) collection in April spiked to 1.87 lakh crore on bunching of economic activity at the end of the fiscal, high inflation and improved tax administration..
The first two factors are unlikely to sustain, and GST collection in subsequent months should, if it stays on trend, move closer to the 1.6 lakh crore of March..
The April number is in step with the full-year budget projection, which does not assume big improvements in revenue buoyancy..
The weighted average tax rate in GST's current avatar has slipped considerably below the revenue-neutral rate determined before its imposition..
Neither the Centre nor the states seem to be in a tearing hurry to address the issue because of the headline-grabbing monthly collection numbers and the opposition to rationalising rates..
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GST helped increase revenue buoyancy of states: FM
01, Jul, 23Giving a comparison of the tax rates pre and post-GST, Sitharaman said, GST has done justice to the consumers by bringing the rates down compared to the previous regime . Before GST was introduced, India's indirect tax system was fragmented, where every state was effectively a distinct market for the industry as well as the consumer.