Recent debates over the surge in monthly GST collections, surpassing Rs 2 lakh crore in April, suggest that while inflation contributes to better tax collection, it’s not the sole factor. Analysis reveals that growth in GST is primarily due to enhanced compliance, closing of tax evasion loopholes, and increased economic activities. Despite adjustments for inflation, FY24 saw a robust 11.65% growth in GST collections. Economists emphasize that nominal GDP growth and sustained tax buoyancy are pivotal for revenue enhancement. The rise in compliant taxpayers and efforts to curb leakages have significantly bolstered GST revenue, underscoring the system’s evolving efficiency.