GST col­lec­tion rises in Septem­ber, but still short of goal

Mint Asia ST - - News -

New Delhi: Rev­enue col­lec­tions from the goods and ser­vices tax (GST) rose to ₹ 94,442 crore in Septem­ber but is still short of the ₹ 1 tril­lion monthly tar­get set by the gov­ern­ment. GST rev­enues in Au­gust were ₹ 93,690 crore. The short­fall in col­lec­tions will in­crease gov­ern­ment’s de­pen­dence on di­rect tax col­lec­tions to meet fis­cal deficit tar­get for FY19. A slew of tax rate cuts along with lack of ad­e­quate steps to check tax eva­sion, in­clud­ing in­voice match­ing, have con­trib­uted to GST rev­enues miss­ing monthly col­lec­tion goals. The slow pick-up in rev­enue col­lec­tions un­der GST has been a cause of con­cern for the gov­ern­ment, with cen­tral tax of­fi­cials tour­ing states to dis­cover the un­der­ly­ing rea­sons. tax, and whether the tax will be levied on all items or sin and lux­ury goods. The panel will also de­cide on the scale of dis­as­ter, which would re­quire funds in ad­di­tion to what is pro­vided un­der na­tional dis­as­ter re­lief fund.

The panel will have rep­re­sen­ta­tion from north-east, coastal and hill states. The Con­sti­tu­tion amend­ment brought in to fa­cil­i­tate GST’S roll­out has a pro­vi­sion that in the event of a nat­u­ral calamity, a spe­cial rate can be im­posed with the per­mis­sion of the GST Coun­cil.

remya.n@livemint.com

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