New Delhi, September 9 (Daily Kiran) : The Indian government has dismissed criticisms regarding its GST revenue growth calculations, asserting that comparisons must be made on a consistent basis rather than across different tax bases.
In a statement released on Wednesday, the Central Board of Indirect Taxes and Customs (CBIC) emphasized that the monthly GST revenue figures provide an accurate portrayal of revenue performance.
The CBIC noted that the GST Council had decided to discontinue the compensation cess on all items except tobacco and related products starting September 22, 2025. The cess on tobacco products was also removed as of February 1, 2026, leading to no cess collection during this period.
Consequently, from November 2025, which marked the first tax period following the GST rate changes, the publicly available GST revenue data has separately displayed the compensation cess in a table. Year-on-year growth calculations were based on the relevant periods’ CGST, SGST, and IGST tax bases, with a footnote included for clarity.
The CBIC stated, “Growth rates are meaningful only when calculated on comparable bases, meaning both sides of the comparison should involve the same type of levy. Otherwise, it is akin to comparing apples and oranges. The purpose of growth figures is to illustrate changes in the tax base. Monthly GST revenue figures accurately reflect revenue performance. Retaining a levy in the base when it has been abolished yields misleading results, both mathematically and logically.”
The board further asserted that any attempt to present data from two disparate tax bases is entirely misleading and deceptive. It stressed the importance of making comparisons between similar entities rather than confusing citizens with fundamentally different datasets.
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