During the month, revenues from import of goods was 25% higher and revenues from domestic transaction (including import of services) are 11% higher than revenues from these sources during the same month last year,” the finance ministry said in a statement. During 2021-22, annual growth was estimated to have grown 30. 5%, which came on the back of a 7% decline in the previous year on account of the national lockdown and the impact of Covid-19 on overall economic activity.
“The latest highest ever tax collections recorded in GST, clearly indicate the growth potential of the domestic market and reflect on strong fundamentals of the Indian economy. While some of these high collections are attributable to the stringent measures adopted by regulatory agencies to strengthen compliance, due credit should also be given to increasing consumption appetite of the domestic market,” said Saurabh Agarwal, tax partner at EY India. Government sources said that despite the impressive growth in recent months, there was a case to rationalise the tax structure, something that is being discussed by a group of ministers.
“Higher GST collections, in addition to customs duty (rebound in gold imports in February 2022 post third wave) as well as direct taxes are likely to have pushed up the gross tax revenues of the GoI well above the FY2022 revised estimates. Based on the additional tax devolved to the states in FebruaryMarch 2022 (excluding arrears pertaining to earlier years), we have assessed that the gross tax revenues of the GoI likely overshot the RE of Rs 27. 6 lakh crore by a considerable Rs 2. 25 lakh crore,” ICRA chief economist Aditi Nayar said.