Economic Survey · Ministry of Finance, Department of Economic Affairs · 2020-01-31

Economic Survey 2019-20 (Volume 2) - Chapter 2: Fiscal Developments (GST)

The fiscal chapter of the 2019-20 Survey reviews GST collections in a year of slowing growth. It includes a statistical (vector autoregression) analysis of how cutting the number of goods in the 28 per cent slab affected collections. It describes GSTN's use of behavioural nudges to encourage voluntary compliance, and lists the year's GST reforms in an annex. It argues that future tax collections will depend on how buoyant GST revenue is.

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Key findings and recommendations

  • Gross GST (Centre plus states) in April-November 2019 was Rs. 8.05 lakh crore, up 3.7 per cent. Centre's GST grew 4.1 per cent.
  • The VAR analysis in Box 2 estimates how rate rationalisation affected GST collections.
  • GSTN built behavioural nudges into the portal to encourage timely compliance.
  • A larger base of indirect taxpayers under GST is said to have improved tax buoyancy.

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