Govt forms panel to boost GST revenue

SLOWDOWN Tax collections fell to 19-month low in Sept

NEW DELHI: The Centre on Thursday set up a committee to come up with a list of changes in law and procedures needed to augment Goods and Services Tax receipts.

The move comes after the GST collections dived to a 19-month low of ~92,000 crore in September. The dip coincided with an economic slowdown triggered by very low consumer demand. But the decision to set up the committee with a directive to give its first report within 15 days indicates the government assessment that systemic changes in the GST architecture could help.

It also suggests that the government is open to overhaul the taxation system introduced in July 2017. It was then India’s largest and first indirect tax reform.

“The committee shall submit its first report within 15 days to the GST Council Secretariat,” it added. THE PANEL HAS BEEN TASKED WITH: Suggesting reforms to augment GST receipts Advising on systemic changes to improve GST compliance, prevent misuse Give inputs on measures for expansion of tax base Recommending policy measures and changes needed in law

There has been mounting concern within the government after GST collection in September this year fell 2.67% to ~91,916 crore compared to the same period last year.

The collection was pegged as the lowest since February 2018. According to government data, the gross monthly collection slipped below ~1 lakh crore for The central government’s move comes after GST collections dived to a 19-month low of ~92,000 crore in September

Gross monthly collection also slipped below ~1 lakh crore in August 2019 (~98,202 crore) Experts have cited economic slowdown as the reason for falling GST collections two consecutive months. The tax collection in August 2019 was ~98,202 crore.

An order issued by the GST Council Secretariat told the committee to “consider a wide range of reforms”.

A six-point agenda for the com