Congress alleges slowdown in GST collections; asks government to focus on complexities of economy

Congress expresses concern over disappointing GST numbers, urges government to focus on economy complexities, not popcorn tax.

The Congress on Friday (January 3, 2024) expressed concern over the "disappointing" latest Goods and Services Tax (GST) numbers and urged the government to focus on the complexities of the economy instead of imposing tax on popcorn.

Net GST growth slumps to 3.3% in December, as revenues slow and refunds rise 45%

In a statement on the latest GST numbers, Congress general secretary in-charge communications Jairam Ramesh claimed that India was locked in a “pernicious cycle of low consumption — low investment, low growth, low wages.”

He said, "The litany of demoralising news on the economic front from the deceleration in growth to the poor GST revenue collections — demands that the government apparatus shift its focus from administering tax on popcorn to engaging with the complexities of the economy." "The Union Budget, due to be presented next month, must provide income support to India's poor and tax relief for the middle classes. A GST 2.0 — a truly Good and Simple Tax like the Indian National Congress had envisaged in its Nyay Patra for the 2024 Lok Sabha Elections — must be instituted," he added.

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He also said tax and investigative agency terrorism that was deterring private investment and leading to flight of entrepreneurs must end. The Congress leader said the latest data from December showed that GST collection receipts increased at the second-slowest pace in three-and-a-half years this past month.

"Net GST collections, after adjusting for refunds, slumped to 3.3% growth — the lowest in FY25. This is concerning news, on several fronts," he claimed. Mr. Ramesh said the government recorded an increase in GST collections of 8.6% in the first three quarters of the current financial year.