On 1st July 2024, India completed 7 years of implementation of GST in the Indian economy. Initially it was a roller coaster ride with many states objecting on various issues along with implementation confusions and glitches. As a result many had expected it to fail but India has implemented GST smoothly across the nation. It is a great achievement as it has unified the Indian markets as far as taxation is concerned.
However, some concerns are being raised with July moving towards August! Every month in the first week, India has been regularly and religiously releasing the GST collection data. It was religiously followed till June 2024. But since 1st June 2024, GST collection data has not been released. None knows, why has it not been released?
People are now speculating about it with so many conspiracy theories. However, media reports suggest that the GST collection in the month of June 2024 was ₹1.74 lakh crores which is 7.7% greater than the collection of June 2023.
At this point of juncture when global economic growth prospects are not very bright, the Indian economy is being forecasted to grow at rate of 7% in 2025. The Asian Development Bank (ADB) has retained its forecast of 7% GDP growth for Indian economy in financial year 2025 and International Monetary Fund (IMF) has increased the GDP growth in the Indian economy from its earlier forecast of 6.8% to 7% in financial year 2025 in its latest World Economic Outlook (WEO) update for July 2024.
Indian authorities must come up with the GST collection data as soon as possible. Otherwise any delay will impact the credibility of data!! And at this point of juncture with a relatively weak and coalition government at center under Shri Narendra Modi, it may prove very costly for India.
Rajeev K Upadhyay
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