New Delhi: Former RBI Governor was bang-on when he pointed out that demonetization was a misguided concept which, along with the poorly implemented GST (Goods and Service Tax), has badly hit the Indian economy.
On Friday, his comment was borne out by the latest data which says GST revenue collection is off target and the mop-up has failed to touch the Rs 1 lakh crore mark. And that too in the festive season, which is considered as the 'golden time for business.'
In fact, the revenue in October 2019 declined by 5.29%, as against that in October 2018. Not just that; the mop-up during festive season is below the collection during April- August 2019.
This is a clear indication that the economic slowdown is beginning to eat into GST revenue.
For the record, the GST collection in October declined to Rs 95,380 crore, as against Rs 100,710 crore in the same month a year ago. This is the third consecutive the GST mop-up has remained below the Rs 1 lakh crore mark.
This is, from all accounts, is a grim situation and the government needs to ensure better compliance and increase the taxpayer base, pointed out an expert.
The GST dip is likely to give additional fodder to the Congress party, which has decided to hold a national-wide protest between November 5 and November 15 on the simmering economic crisis, the sluggish consumer spending, the mounting unemployment, the banking crisis and the agrarian distress.
