Mint Explainer: What data tell about Centre's fiscal health, economy

livemint.com:

Mint takes a close look Incomes of corporations and individuals show divergent trends. Data from the Controller General of Accounts (CGA) show that Centre’s revenue from corporate tax collection remains a tad weak so far this fiscal compared to what was collected in the same time a year ago. At the end of July, corporate tax collection of ₹1.76 trillion lagged behind what was collected in the same time a year ago by over 10%.

However, personal income tax receipts in the first four months of this fiscal at ₹2.57 trillion shows a 6% growth over what was collected in the same time a year ago. Corporations pay taxes in four installments in a year as advance tax based on their estimates of profits in the year. Gross tax revenue in the first four months of the fiscal at ₹8.9 trillion, which also includes indirect taxes, shows a 3% annual growth.

Centre’s receipts from goods and service tax (GST), a tax on consumption, shows a positive trend with double digit growth. At ₹2.73 trillion, cumulative CGST receipt upto July shows a robust 16% year-on-year growth, highlighting a strong consumption trend. To be sure, inflation also plays a role in GST collections.

GST compensation cess collection at the end of July shows a 10% annual growth. This is levied on items in the 28% GST slab, especially, automobiles. GST collection could see further improvement in the coming months on account of festive demand for goods and services but inflation and high interest rates pose risks to consumption growth.

Basic customs duty receipts in the meantime, showed a 27% jump at the end of July. The Centre’s excise duty collections show a trend of moderation. In the first four months of this financial year, the Centre collected ₹76,200 crores from