Why record high GST collection is an exception and not a norm yet

The government had touted GST as a tool to increase tax compliance when it was introduced in July 2017

India’s goods and services tax revenue touched the highest ever in April, but the spurt in collections is far from becoming the norm just yet.

Collections from the nationwide sales tax rose 10 per cent to Rs 1.13 trillion ($16 billion) in April from a year ago, official data show. While that was the closest to the Rs 1.15 trillion monthly target set by Prime Minister Narendra Modi’s administration, it’s still not enough to bridge the government’s budget gap, say economists.

“If GST collections do not improve further and sustain, the pressure on the central government’s fiscal position will continue,” economists Suvodeep