Hindi English Translation || Editorial || A small uptick: On November’s GST revenues

A small uptick: On November’s GST revenues

Tax collections show consumers have been cautious about festive spending

India’s gross (सकल, कुल आय) Goods and Services Tax (GST) revenues grew almost 11% this November to nearly ₹1.46 lakh crore. While this is only the tenth such occasion since the onset (शुरुआत) of the GST in July 2017 that revenues have been over ₹1.4 lakh crore, that mark has been consistently topped for nine months now. The two highest GST monthly receipts so far — over ₹1.67 lakh crore in April and ₹1.51 lakh crore in October — were partly bolstered by taxpayers filing quarterly returns. Discounting periodic spikes (A sharp increase in the magnitude or concentration of something) in compliance (अनुपालन, अनुसार), one can possibly peg the ₹1.4 lakh crore as the new normal baseline (आधारभूत) for monthly GST revenues hereon. With almost ₹12 lakh crore already in the GST kitty this year, the Government is likely to end up with a not-insignificant (तुच्छ, छोटा) surplus over its Budget. This is welcome fiscal (राजकोषीय) headroom (निकासी), especially since the Centre’s subsidy bill on items such as fertilizers and foodgrains has also surpassed (पार करना) the Budget math, and may help the Government stick to its fiscal deficit target. On the flip side, however, November’s GST revenues are not an enthusing (उत्साहजनक) indicator about the state of the broader economy.

The 10.9% overall GST revenue growth in November, reflecting transactions undertaken in October when the major festivals, including Deepavali, occurred — is the slowest uptick recorded since June 2021. November revenues were the lowest in three months and marked a nearly 4% dip from October’s kitty. E-way bills generation, broadly indicating outflow (बहिर्वाह, निकल भागना) of goods from producers to the wholesale and retail supply chains, dropped a steeper 8.6% sequentially, perhaps as factories recorded higher downtimes amid extended holidays. One would have expected festive consumption to spike the GST intake despite (इसके बावजूद) the e-way bills decline, as inventories were already built up in anticipation. That effect appears muted and it is quite puzzling that revenues contracted year-on-year in as many as seven States, including Gujarat and Kerala. Growth in inflows from domestic transactions slowed from 18% in October to 8% last month, while revenues from imports of goods rose to 20% in November — a possible sign that the consumption recovery remains uneven, with goods consumed by higher income groups seeing a better rebound (प्रतिक्षिप्त होना, जवाबी हमला). December’s post-festival GST collections could yield a clearer picture, both on the sustainability of the headline revenue numbers and the growth trajectory of the economy. The GST Council, meeting this month after another prolonged gap, must expedite long-awaited action on pending issues to bolster (To support or give a boost to) compliance, and not lose sight of the larger, currently-deferred (स्थगित, विलम्बित) plan to rationalise the tax rates with a view to spur (प्रोत्साहित करना) broad-based and sustainable (टिकाऊ, दीर्घकालिक) consumption growth.

Courtesy: The Hindu

Important Word List With Meaning

1.Gross (Adverb)

Hindi Meaning - सकल, कुल आय
English Meaning - Without tax or other contributions having been deducted

2.Compliance (Noun)

Hindi Meaning - अनुपालन, अनुसार
nglish Meaning - The act of complying with a desire.

3.Baseline (Noun)

Hindi Meaning - आधारभूत
English Meaning - A minimum or starting point used for comparisons.

4.Insignificant (Adjective)

Hindi Meaning - तुच्छ, छोटा
English Meaning - Too small or unimportant to be worth consideration.

5.Fiscal (Adjective)

Hindi Meaning - राजकोषीय
English Meaning - Relating to the public revenues.

6.Surpassed (Verb)

Hindi Meaning - पार करना
English Meaning - Outdo something or someone

7.Enthusing (Verb)

Hindi Meaning - उत्साहजनक
English Meaning - Express eager enjoyment, interest, or approval regarding something.

8.Outflow (Noun)

Hindi Meaning - बहिर्वाह, निकल भागना
English Meaning - A large amount of money, liquid, or people that moves or is transferred out of a place.

9.Despite (Preposition)

Hindi Meaning - इसके बावजूद
English Meaning - In spite of

10.Rebound (Verb)

Hindi Meaning - प्रतिक्षिप्त होना, जवाबी हमला
English Meaning - Have an opposite and undesirable effect to what was intended.

11.Spur (Verb)

Hindi Meaning - प्रोत्साहित करना
English Meaning - Promote the development of.

12.Sustainable (Adjective)

Hindi Meaning - टिकाऊ, दीर्घकालिक
English Meaning - Able to be maintained at a certain rate or level.

13.Deferred (Verb)

Hindi Meaning - स्थगित, विलम्बित
English Meaning - Postpone

14.Onset (Noun)

Hindi Meaning - शुरुआत
English Meaning - The beginning of something, especially something unpleasant.

15.Headroom (Noun)

Hindi Meaning - निकासी
English Meaning - Clearance

16.Uptick (Noun)

English Meaning - A small increase or slight upward trend.

17.Spikes (Noun)

English Meaning - A sharp increase in the magnitude or concentration of something.

18.Bolster (Verb)

English Meaning - To support or give a boost to.