Due to the resumption of economic activity after the worst of the pandemic andpressure across the board, the state’sGST collectionrose by 49% this June.Gujarat‘sGSTmop-up was Rs 9,135 crore in June 2022 (till June 29) against Rs 6,128 crore last June.
The Growth is on a low base, as tax collection was subdued last year as the second wave of Covid-19 cases had barely ended and economic activity was slow.
At the recent GST council meeting, tax rates on a host of items of mass-consumption were increased and exemptions removed. The council approved a 12% tax on hotel rooms costing less than Rs 1,000 a day and a 5% levy without input tax credit on hospital rooms with rentals above Rs 5,000. Several unbranded pre-packaged and labelled food items will also attract 5% tax.