CBIC rejects claims of inflated GST growth figures

The Central Board of Indirect Taxes and Customs (CBIC) has rejected allegations from former Finance Secretary Subhash Chandra Garg regarding the accuracy of India’s Goods and Services Tax (GST) growth figures.

Garg claimed that the government’s reported 14.8% growth in August 2026 was inflated because the 2025-26 GST compensation cess was excluded from the calculations. He argued that including the cess would reduce the five-month gross growth to 4.08% and net growth to 1.30%.

The CBIC responded by stating that growth rates must be calculated using comparable tax bases to be meaningful, describing the comparison as ‘comparing apples and oranges.’ The board clarified that the GST Council decided to discontinue the compensation cess on most items starting September 22, 2025, with the remaining levy on tobacco products ending on February 1, 2026. Consequently, the CBIC maintained there was no cess to collect during the period in question and that official figures reflect the correct performance based on the current tax base.