Govt withholding GST Revenue Data for June 2024? Stakeholders demand quick release of Details

The nationwide Goods and Services Tax ( GST ), managed through a comprehensive digital and real-time tax network ( GSTN ), was launched on 1 July 2017. As part of the annual practice, the monthly receipts and allocation data for June were scheduled to be released by the Government of India on 1 July 2024, marking the seventh anniversary of the GST system. Unexpectedly, the government chose not to release the monthly GST data on the GST anniversary. This sudden decision left the business community and media puzzled.

The monthly GST data typically includes details of the central government’s receipts through Central GST ( CGST ), states’ receipts through State GST ( SGST ), inter-state GST ( IGST ) including IGST on imports, GST Compensation Cess in its gross and net refunds, and the distribution of IGST among states. This information is crucial for understanding the economy's real functioning.

The Press Information Bureau (PIB) has consistently released GST data monthly until 1 June 2024. Strangely, there was no PIB release on 1 July 2024. Instead, some journalists were briefed unofficially by officials from the Revenue Department in the Ministry of Finance, stating that the GST collections for June 2024 were Rs 1.74 lakh crore, according to a report by the Quint.

GST collections of Rs 1.74 lakh crore for June 2024 represented only a 7.74 percent year-on-year growth compared to June 2023's collections of Rs 1.61 lakh crore. This was the lowest growth in GST collections since June 2022.

In an opinion piece published on 7 May 2024, I highlighted the GST’s low growth and the sharply declining growth of IGST in 2023-24, which continued to fall in April 2024. Despite these concerns, the government celebrated a record GST receipt of Rs 2.10 lakh crore on 1 May 2024.

However, the year-on-year growth rate for GST in 2023-24 was only 11.75 percent, a significant drop from 30.48 percent in 2021-22 and 21.76 percent in 2022-23. The downward trend continued into the next two months.

In May 2024, GST collections were Rs 1.73 lakh crore, with a year-on-year growth of 9.96 percent, falling below 10 percent for the first time since June 2022. The June GST growth of 7.74 percent, following the government's reelection on 9 June, may have been difficult to disclose.

When economic data indicates positive trends, the government is quick to take credit, even when the success isn't solely due to its policies. For instance, high foreign direct investment (FDI) flows in 2020-21 and 2021-22 were celebrated, but the decline in FDI over the last two years has been largely ignored.

Similarly, the government lauded the rise of start-ups turning into unicorns but remained silent during the funding winter that followed. Growing merchandise exports were praised, but when exports dipped, the focus shifted to services exports.

Personal income taxes have performed well in recent years, and the government frequently highlights this success. However, when it comes to Goods and Services Tax collections, the same transparency has not been maintained.

There is no justification for halting the release of GST data. Concealing data raises unnecessary questions about the government’s motives. Regardless of whether the GST revenue is high or low, the data should be disclosed and analysed transparently.

Positive results should lead to policy reinforcement, while warning signals should prompt corrective actions.

Transparency is a paramount concern, considering that the third term of the government led by the present Prime Minister, in ensuring stakeholder confidence.

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