Hindi English Translation || Editorial || ​Revenue repercussions: on GST revenue trends

​Revenue repercussions: on GST revenue trends

Festive season GST receipts hold a critical signal for growth

Goods and Services Tax (GST) revenue trends have been considerably wobbly (अस्थिर, डगमगाता हुआ) this financial year, even as three of its seven months so far have recorded among the highest collections from the indirect tax. While the year started with a bang as April clocked the first ever instance of revenues of over ₹2 lakh crore, with gross and net receipts rising 12.4% and 15.5%, respectively, bolstered (समर्थन करना, मजबूती देना) by year-end filings, July’s gross receipts were the third highest (at the time) at over ₹1.82 lakh crore, up 10.3%. October’s GST receipts prior to refunds, released on Friday, were the second highest in the seven-odd years of the tax. But these spikes have been punctuated (To add marks for clarity or emphasis; to occur intermittently throughout something) by underwhelming numbers. Growth in gross revenues had hit a three-year low of 7.3% in June, and worsened to a 40-month low of 6.5% in September. October’s revenues before adjusting refunds to taxpayers, break a two-month streak (A long, narrow mark or strip; a period of continuous success or failure) of sequential dips, with year-on-year growth recovering to 8.9%. Net revenues grew at a slower 7.9%, but doubled from September’s 3.9% uptick. While this marks an improvement, the overall growth of net GST revenues this year has still declined to 9%, from about 10.2% as of August.

From the fiscal perspective, indirect taxes will have to grow faster in the months ahead to meet the Budget target, but that may not be a significant risk to the deficit (घाटा, कमी) yet, as direct taxes and non-tax revenues have been doing well. Revenue and capital spending have been on a tight leash too. Of course, a month’s GST revenues are linked to transactions that take place in the preceding month, and GST is a tax on consumption. So, last month’s revenues are the first signal of private consumption trends this festive season, although significant purchases may have slowed in the latter half of September amid the 16-day Pitru Paksha. The RBI, in its October bulletin, had termed recent months’ GST trends to be a sign of slackening (ढील देना, गति कम करना) momentum in the economy, but pinned its hopes on improved festive demand and consumer sentiment (भावना, विचार). In that context, the latest GST receipts are a good omen but November’s receipts for last month’s activity will lend greater clarity on whether those hopes are well placed, with Dussehra and Deepavali falling in October unlike last year. Initial car sales data suggest a K-shaped situation with pricier SUVs growing fast while overall sales straddled (फैलाना) the middle lane. However this plays out, the GST Council, that meets soon, must not be deterred (रोकना, हतोत्साहित करना) from expediting (शीघ्रता करना) the rate rationalisation exercise, including the lowering of taxes on items such as cement and insurance, which could spur higher sales volumes and compensate (मुआवज़ा देना) for any revenue losses.

Courtesy: The Hindu

Important Word List With Meaning

1.Repercussion (Noun)

Hindi Meaning - प्रतिकूल प्रभाव
English Meaning - An unintended consequence or effect of an action, especially a negative one.

2.Wobbly (Adjective)

Hindi Meaning - अस्थिर, डगमगाता हुआ
English Meaning - Unstable or likely to move or shake; unsteady.

3.Bolster (Verb)

Hindi Meaning - समर्थन करना, मजबूती देना
English Meaning - To support or strengthen something; to reinforce.

4.Deficit (Noun)

Hindi Meaning - घाटा, कमी
English Meaning - The amount by which something, especially money, is too little.

5.Slacken (Verb)

Hindi Meaning - ढील देना, गति कम करना
English Meaning - To make or become less active, fast, or intense.

6.Straddle (Verb)

Hindi Meaning - फैलाना
English Meaning - To stand, walk, or sit with the legs wide apart; to be undecided between two options.

7.Expedite (Verb)

Hindi Meaning - शीघ्रता करना
English Meaning - To speed up or make something happen more quickly.

8.Deter (Verb)

Hindi Meaning - रोकना, हतोत्साहित करना
English Meaning - To discourage someone from doing something, often by instilling fear or doubt.

9.Compensate (Verb)

Hindi Meaning - मुआवज़ा देना
English Meaning - To make up for something or give something in recognition of loss or harm.

10.Sentiment (Noun)

Hindi Meaning - भावना, विचार
English Meaning - An attitude, thought, or feeling, especially one that is influenced by emotions.

11.Punctuate (Verb)

English Meaning - To add marks for clarity or emphasis; to occur intermittently throughout something.

12.Streak (Noun)

English Meaning - A long, narrow mark or strip; a period of continuous success or failure.