7 days ago
GST growth surge is a good augury
India's 6.2 per cent year-on-year increase in GST collections for June - amounting to ₹1.85 lakh crore - highlights the economy's underlying strength and the maturing efficiency of its tax system. Although slightly lower than the April-May's highs, this steady growth reflects strong consumer demand, a widening tax base, and deeper formalization.
A nearly 12per cent rise in GST revenues during Q1 of FY26, along with the ₹22.08 lakh crore collected in FY25, signals the success of digital reforms like e-invoicing, real-time analytics, and improved compliance—all of which have curbed evasion and streamlined administration. This revenue buoyancy boosts the fiscal firepower of both central and state governments, allowing for greater public investment without excessive borrowing.
Notably, the sharp rise in collections from smaller and northeastern states points to more inclusive regional growth and better compliance. Rising GST refunds—especially for exporters—indicate stronger trade momentum and improved liquidity for MSMEs, enhancing India's global competitiveness. The doubling of the taxpayer base since 2017 further affirms GST's expanding reach. Together, these trends reflect a virtuous cycle of digital governance, formalization, and revenue growth—laying a robust foundation for policy stability, investor trust, and long-term resilience.
Amarjeet Kumar
Hazaribagh
