Using GST as consumption proxy

Unlike private consumption data, GST can provide real-time insights into consumption patterns, economic activity, and state-wise variations

Last financial year, net goods and services tax (GST) collections (gross collections minus refunds) surged 13.4 per cent, outpacing the 9.6 per cent growth in nominal gross domestic product (GDP).

This financial year has also started strong, with the gross April mop-up soaring to record Rs 2.1 trillion, the highest monthly haul since the levy was introduced in July 2017. The data spawned by this collection ecosystem has another, unintended benefit. It can throw light on private consumption, including at the state level.

GST is a consumption-based tax, accruing to the state where goods are consumed, as opposed to where they are