Steady GST hum

Goods and services tax (GST) revenue figures for February released by the government on Wednesday show that collections climbed 12% from a year earlier to almost ₹1.5 trillion. February’s collections mark 12 months in a row of GST revenue exceeding ₹1.4 trillion. Given this trend, it is clear that the monthly collection figure has settled comfortably at levels significantly above those seen last year. This speaks of both a commercial recovery after covid and a strengthening of the regime, which has had many loose ends tied in recent years. As the economy’s formalization rises and government efforts to draw small businesses into the tax net bear fruit, GST intake should continue its ascent. Broadly, it’s a relief that the regime has left behind the troubles of its initial rocky years to achieve a steady hum. But there are still areas in need of attention. Inverted duty structures in some fields persist; these need correction. Also, its multiple-slab system remains very unwieldy, with little relief from recent rate proliferation; it requires drastic simplification. GST also needs to cover items left for later. And while it’s not feasible to shift to a single GST rate in one go, gradual moves of convergence must begin.