GST receipts growth to stay above nominal growth over the next few years: CBIC chairman
Mop-ups by way of goods and services tax (GST) will maintain above-nominal growth over the next few years, with expectations that buoyancy will stay above one, Central Board of Indirect Taxes and Customs (CBIC) chairman Sanjay Kumar Agarwal told Moneycontrol in a post-budget interaction.
“Compliances are improving. Also, the buoyancy earlier used to be much higher. Now it is shrinking, but for some more time, it will remain one-plus. After that, it will taper and will become one,” said Agarwal.
Tax buoyancy is calculated as a ratio of growth in tax revenues over nominal GDP growth.
GST growth for FY26 is estimated at 10.9 percent in the budget, similar to the previous fiscal. Nominal growth, on the other hand, is projected to be 10.1 percent, yielding an estimated buoyancy of 1.08.
Agarwal noted that the government is also confident it will achieve its GST growth target for the year.
