Hindi English Translation || Editorial || Revenue riddles: On GST inflows and areas of concern

Revenue riddles: On GST inflows and areas of concern

Amid broadly healthy GST inflows, some trends need greater scrutiny (जांच, छांटना)

Halfway through the financial year, India’s gross revenues from the Goods and Services Tax (GST) stand at over ₹9.92 lakh crore, marking an 11.1% increase over collections between April and September 2022. The average monthly revenues in 2023-24 are a healthy ₹1,65,418 crore, with four of the six occasions that the GST kitty has crossed ₹1.6 lakh crore occurring in this fiscal. At almost ₹1.63 lakh crore, September’s GST collections were a tad (थोड़ा सा) below the average, but 2.3% over August’s inflows that had marked a three-month low. With the festive season kicking in, collections over ₹1.6 lakh crore may persist (दृढ़ रहना) through this quarter. The government appears comfortably placed regarding GST revenues in the fiscal context, with room to spare (To refrain from harming or using something, or to have extra without using it) for some moderation in inflows during the January-March 2024 quarter when the central bank expects real GDP growth to slow to 5.7% from 7.8% in the first quarter. Beyond the macro resilience (लचीलापन, प्रतिरोधक्षमता) that these numbers indicate, a few areas of concern deserve closer scrutiny from policymakers and the GST Council which convenes today.

One, there is a discernible (प्रत्यक्ष) slowdown in the growth of GST inflows, which dropped to 10.2% in September, the slowest uptick since July 2021. The average growth between July and September dipped to 10.6% in the second quarter from 11.5% in the first. Growth from domestic transactions and services imports has slowed to 14% over the past two months, from 18% in June. It is important to note that revenues in September, based on transactions undertaken in August, also include pending dues from businesses since the start of the GST regime in 2017-18 as the deadline to remit (माफ करना, क्षमा करना) them was September 30. Moreover, e-invoicing became mandatory (अनिवार्य) for all firms with a turnover of over ₹5 crore since August 1, so there was another compliance push at work. Distilling these effects is necessary to gauge the extent of growth that stemmed (उत्पन्न होना) from actual consumption and production upticks. That a record 9.34 crore e-way bills generated during August did not translate into the highest-ever revenues may suggest that transaction sizes have shrunk, for instance. Another puzzling trend is seen in revenues from goods imports that have shrunk four times this year. Of course, the lower goods import bills recorded this year will reflect in lower GST intakes. However, imports hit a nine-month high of $58.6 billion in August, 10.75% over July’s import bill. Yet, revenues collected in September were 5.7% below the previousmonth’skitty. This does not add up. Authorities must dig deeper to check for revenue leakages (The unintended escape or release of a substance or information through a crack, hole, or other opening) from imports.

Courtesy: The Hindu

Important Word List With Meaning

1.Riddle (Noun)

Hindi Meaning - पहेली
English Meaning - A puzzling question, problem, or statement that requires creative thinking to solve, often with a hidden or unexpected meaning.

2.Scrutiny (Noun)

Hindi Meaning - जांच, छांटना
English Meaning - Close examination, careful inspection, or critical evaluation of something.

3.Tad (Noun)

Hindi Meaning - थोड़ा सा
English Meaning - A small amount or a trace of something.

4.Persist (Verb)

Hindi Meaning - दृढ़ रहना
English Meaning - To continue firmly or obstinately in an action or belief despite opposition or difficulties.

5.Stem (Verb)

Hindi Meaning - उत्पन्न होना
English Meaning - To stop the flow or growth of something, or to originate from a particular source.

6.Spare (Verb)

Hindi Meaning - बचाना
English Meaning - To refrain from harming or using something, or to have extra without using it.

7.resilience (Noun)

Hindi Meaning - लचीलापन, प्रतिरोधक्षमता
English Meaning - The ability to withstand adversity, bounce back from challenges, or recover quickly from setbacks.

8.discernible (Adjective)

Hindi Meaning - प्रत्यक्ष
English Meaning - Perceptible or noticeable; capable of being seen, heard, or understood.

9.Remit (Verb)

Hindi Meaning - माफ करना, क्षमा करना
English Meaning - To send money as payment, to forgive or cancel a debt, or to return a matter to a lower court for further consideration.

10.Mandatory (Adjective)

Hindi Meaning - अनिवार्य
English Meaning - Required or compulsory, often by law or rule.

11.Leakage (Noun)

English Meaning - The unintended escape or release of a substance or information through a crack, hole, or other opening.