Feb GST collection surges 8% in state

Ahmedabad: Increased inflationary pressure, improved industrial production, revival in demand and in turn consumption kept tax collection buoyant in February. According to the data by Union ministry of finance, the goods and services tax (GST) collection in Gujarat stood at Rs 8,873 crore in February 2022, up 8% year-on-year against Rs 8,221 crore in the corresponding month last year.

Industry players and tax professionals attribute the spike in tax collection to inflation and cost pressures in addition to streamlining of business procurement cycles.

“The demand has improved to an extent and the positive sentiment remains in the domestic market especially after the receding of the Omicron wave. As a result, the consumer confidence was good, which drove consumption due to which tax collection went up,” said PathikPatwari, senior vice-president, Gujarat Chamber of Commerce and Industry (GCCI).

Meanwhile, raw material prices even though higher, remained stable, which kept industrial production too afloat, according to industry players. “Since raw material costs have remained on the higher side overall, inflationary pressures will keep the tax collection high,” Patwari further added.

Industry players also said that besides raw materials, prices of finished goods including textiles, apparel, cement, steel, gold, silver jewellery and even edible oils have also increased.