The recovery that increased in April, One reason for this is the increase in imports and the cost of imported goods and services. It must also be added that the increased inflation rate within the country also contributes to this. When the price of something rises, So the tax amount also increases in proportion to the tax rate on it.
In April, the Government of India made a record of GST collection. About one lakh 68 thousand crore rupees were recovered. Under normal circumstances, this figure would have been a matter of happiness for the whole country. Because generally increasing tax collection is linked to prosperity in the economy. But two main reasons have been given for the increase in the recovery in April. The first reason among them is the increase in imports and the cost of imported goods and services. It must also be added that the increased inflation rate within the country has also contributed to this. When the price of a good or service increases, the amount of tax increases in proportion to the tax rate on it. The second reason given is that with the new financial year, the government has now implemented the rule that the input credit will not be given back to the businessmen who do not pay GST on time. So the result was that the traders filled the GST form on time. That is, businessmen who were late in paying tax due to laziness or any immediate problem did not do so. So the entire amount came to the government.
Formalizing the economy is a right step in itself. It is also a fair expectation that everyone should pay the tax on time. However, with the rise in inflation, the government’s coffers should be filled more, this is a problematic matter. Especially at a time when the government is following the policy of increasing the share of indirect taxes in the tax structure. Due to this, people suffering from inflation of goods and services are also burdened with higher GST. Due to this the real income of the people is decreasing. Due to this their consumption has decreased. This has had a negative impact on the natural cyclical growth phenomenon of the economy. Referring to this situation, Maruti Suzuki Chairman RC Bhargava said that butter has disappeared in the bread-butter of the small car market. This butter is actually disappearing from the entire general economy. The onus is on the government to bring it back. One way is to cut indirect taxes for this. And when record recovery is taking place, so be it, it becomes even more expected.