Record GST inflows are heartening, but major risks lie aheadIndia’s GST regime could not have hoped for a better start to its fifth year. Revenues from the tax hit an all-time high of ₹1,41,384 crore in April, surpassing the previous month’s record of about ₹1.24 lakh crore. After a disastrous period for the economy following last year’s national lockdown, GST revenues hit ₹1.05 lakh crore in October and have shown a steady uptick since then, in tandem with hopes of a sustained recovery. In April 2020, GST collections had dipped to a mere ₹32,172 crore after all activity ground to a halt at four hours’ notice in late March. It would be foolhardy now to expect GST and other tax revenues to stay robust till the government gets a better grip on infections and vaccinations.

Source: The Hindu May 03, 2021 18:32 UTC