The GST puzzle

• April 7, 2021
• CA Chandan Agarwal's Office

The sharp rise in GST collection in March could be a false indicator if further rate reforms are delayed

The amount of goods and services tax (GST) collected in March 2021 has triggered a wave of celebrations within the government and even among the analyst community. This is not entirely unexpected.

At Rs 1.24 trillion in the last month of 2020-21, it is the highest monthly collection since the launch of GST in July 2017. What’s more, the collection in March meant that for the sixth month running, in a pandemic year, the government has managed to get more than Rs 1 trillion in its GST kitty. Does it then mean that the GST numbers reflect the economic recovery that was keenly …