During CNBC-TV18’s Budget Verdict, key government officials expressed strong confidence in meeting the fiscal year’s GST collection targets and projected economic growth for 2024-25.
The panel consisted of Ajay Seth, Economic Affairs Secretary (DEA); M Nagaraju, Department of Financial Services (DFS) Secretary; Anurag Agarwal, Chairman of Central Board of Direct Taxes (CBDT); and Nitin Agarwal, Chairman of Central Board of Indirect Taxes and Customs (CBIC).
The CBIC chairman shared an optimistic outlook on GST collections, highlighting the recent record-breaking figure of ₹1.95 lakh crore in GST revenue, which saw a 12.3% growth rate — marking it as the second-highest collection ever. Agarwal also pointed out that the collection for the Centre had grown at 10.2%, outpacing nominal GDP growth, further reinforcing confidence that the revised GST collection target of ₹10.62 lakh crore would be met.
He said, “As far as GST collections are concerned, in this month, the GST collection was very robust. It was 1.95 lakh crore, and at the growth rate of 12.3%. So this is the second-highest ever GST collection in the history of GST so far.”
He emphasised that with the last quarter typically yielding better results, the government remained confident in achieving both the revised and the budget estimates for GST revenue collection.
Turning to the broader economic outlook, Ajay Seth, Economic Affairs Secretary, expressed optimism about the next fiscal year’s growth. Citing India’s resilience despite global challenges, Seth noted that the government projected growth could to be at the upper end of the Economic Survey’s suggested range, predicting a 6.8% growth rate for 2024-25.
He explained, “Certainly, given that what the external environment today is, presuming that this remains as it is at the moment, we expect the next year, growth to be towards the upper limit of the band which has been suggested in the Economic Survey, which is 6.8%.”
On the topic of tax compliance, Agarwal pointed to the government’s ongoing efforts to tighten the registration process to prevent fake entities from entering the system. He acknowledged that while these steps were necessary, there were plans in place to simplify the process for certain taxpayers.
He further assured that a concept paper had been presented to the GST Council to address these concerns. Additionally, there were questions raised about changes to the merchant discount rate (MDR) rules.
M Nagaraju, DFS Secretary, confirmed that discussions were ongoing and hinted at potential changes by this year. He stated, “That is under consideration. We will let you know the policy decision when the decision is taken,” adding that it could happen “soon this year.”
When asked about their confidence in meeting the budget estimates for the coming year, the panel remained resolute. Anurag Agarwal, Chairman of the CBDT, shared his confidence about closing the current year successfully. He said, “Yes, we are very confident the way we are growing (tax collections) this year, at the rate of about 14.5%. I’m confident that this we will close this year with the targets that we have been given so far as the next financial year. We have done our maths.”
In response to whether the target would be beaten, the CBIC chairman maintained a positive outlook, stating, “Beat the target? Well, at least meet the target,” he affirmed.
Point 5% I’m confident that this we will close this year with the targets that we have been given so far as the next financial year. We have done our maths, right, and I’m very, very hopeful that we should be able to beat the target.
Nagaraju expressed optimism that India would be able to weather global economic challenges and continue progressing. Meanwhile, Seth echoed the sentiment that India was on track to meet its revised fiscal goals.
Source from: https://www.cnbctv18.com/economy/weve-done-our-math-cbdt-cbic-confident-of-meeting-gst-targets-19551986.htm
