The caveat you need to know while reading the GST ‘record’ in April
Goods and services tax (GST) collections hit a record Rs.2.1 trillion in April, according to data released by the finance ministry on 1 May. The monthly GST data has often been used as a barometer of how well the economy is performing. But the April data may not be so straightforward.
Indeed, the collections in April were the highest since the implementation of the indirect tax regime in 2017. But it’s important to remember that the April data is for transactions that took place in March, which usually benefit from high year-end economic activity and compliance-related measures. This spike tends to be short-lived, and collections in the rest of the year tend to be sharply lower.
