Harsh Bhuta, Partner, Bhuta Shah and Co LLP says, The reasons behind the rise of GST collection in India are more businesses coming to the formal economy, and ease of compliance over the last five to six years that helps more people pay GST on time with correct rates. Easier compliance leads to more timely GST payments at correct rates.
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#gst #gstcollectionaugust #upi #indianeconomy #infomericsratings #HarshBhoota
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00:00So I want to talk today about the stupendous rise in GST collections in
00:05India and obviously that is a factor of the fact that how GST reforms have been
00:11so effective in this country. I think the latest figure is that April to August
00:1724 has been the highest collections of all time in GST era which is 8.06 lakh
00:24crore which is grew vis-a-vis last year at 10.2% so we can expect that kind of
00:31growth for this financial year as well. I think what's been fabulous to see is
00:36that you know from the time GST has been implemented in 17-18 where the
00:40collection was 7.19 lakh crore to 23-24 at 20.18 lakh crore we have seen a CAGR
00:50of 19% so growth of 19% year-on-year has been stupendous and I think the major
00:57reason is that more and more businesses are coming to the formal economy, the GST
01:02reforms of the government have been effective and because of ease of
01:10compliance over the last 5-6 years more and more people have been able to pay
01:17their GST on time and at the correct rates and more than anything it shows
01:23the growth of the of the economy as a whole and this has also allowed the
01:29states to develop their growth agenda to take their infrastructure development
01:34and other development of the state forward so I think it's a great
01:38indicator for the domestic economy and I think a lot of this surge is due to the
01:44surge in domestic consumption particularly this year is what we are
01:48seeing is that there have been some slowdown in imports while at the same
01:52time the purchase and sale transactions domestically are going up showing the
01:57buoyancy of the country and the buoyancy of the economy. I want to also talk to
02:03you about how this in some way is also linked to UPI because the digital
02:09transactions of this country are growing phenomenally high and I think that is
02:16because of the ease of use of UPI. I think we have the best digital payment
02:22infrastructure in the world where we are able to give consumers the option of
02:28transferring money digitally through UPI without any cost and that's not seen
02:34anywhere in the world and that's why NPCI and the government are trying to
02:38push this also to other countries globally. We are seeing that this month
02:45in August a 3% increase in UPI transactions vis-a-vis July at 14.96
02:53billion transactions and this has been the highest ever since 2016 when this
02:59platform was operationalized. So you are seeing a continuous adoption of digital
03:04payments in India. I think this will lead to more and more businesses,
03:09companies, individuals being part of the formal economy and that will have a
03:14direct correlation with GST collections and buoyancy of tax collections
03:20overall for the economy.