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Below the Quote on GST collection August 2024 by Dr. Manoranjan Sharma, Chief Economist at Infomerics Ratings

India's Goods and Services Tax revenue collection for August 2024 stood at Rs. 1,74,962 crores, marking a 10% increase compared to Rs 1,59,069 crore collected in August 2023. When compared to July 2024, which had GST collections of Rs 1.65 lakh crore, the August figures may seem a monthly decrease in growth terms on both a year on year and sequential basis. But this would not be an appropriate way of looking at things in view of the buoyancy in both direct and indirect taxes, tax slab rationalisation during the seven-year period, plugging of leakages and loopholes in the indirect tax system and steady GDP growth of 7% or even more over the long haul. In other words, when considered in a proper historical and comparative perspective, the GST collection has risen remarkably since its inception. It’s difficult to record a consistently high growth rate on a constantly rising and much higher base. This base effect needs to be factored in for a comprehensive assessment of the evolving GST collection scenario in India.

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