Neutral impactSector
GST growth comparisons can’t be 'apples and oranges' says CBIC; hits back at 'misleading' claims
Economic Times 1 hr ago·9 Sept 2026, 4:42 pm
The Central Board of Indirect Taxes and Customs (CBIC) has clarified that comparing current Goods and Services Tax (GST) collections with past figures can be misleading. The board stated that growth calculations must be done on a 'like-for-like' basis to be accurate. This comes after recent claims suggested a slowdown in revenue growth. The CBIC emphasized that comparing different tax bases or periods without adjusting for these factors does not provide a true picture of the economy's health.
This clarification matters to investors as it helps distinguish between genuine economic trends and statistical anomalies. By ensuring fair comparisons, analysts can better assess the government's fiscal health and the broader consumption environment. Investors should focus on consistent data points rather than short-term fluctuations. Understanding the proper methodology for these comparisons is key to making informed investment decisions based on tax revenue trends.
Excerpt from Economic Times
The CBIC stated that comparing GST revenue figures using different tax bases is misleading. Growth calculations must be made on a like-for-like basis for meaningful analysis. The compensation cess was discontinued on most items from September 2025. Since then, no compensation cess has been collected by the government.…Read the original at Economic Times
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- Category: Sector.
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