Inflation, imports main reasons for record GST collections, says report

The ministry attributed the robust mop-up to its tightened compliance measures and a crackdown on GST evaders and fake bills

The record goods and service tax (GST) collections in April were less due to increased consumption and more due to inflation and rising imports, said a report by Ambit Capital on Monday.

“The jump in GST collections should not be confused with commensurate rise in consumption as consumption in real terms is just 2 percent above pre-pandemic levels,” said the report, authored by Ambit’s research analysts Sumit Shekhar and Eashaan Nair. “Our analysis shows that the higher GST collections have been driven by high inflation which has pushed nominal GDP growth to an 11-year high, tightening of compliance by government which