Panel to revive GST Collections
The GST collection in September 2019, dropped sharply to a 19-month low. This reflects the widening slowdown of the economy. The tax collections were Rs 91,916 crore in September. This was 2.67% less as compared to September 2018.
The Gross GST collection in September 2019 comprises of Rs 16,630 crore collection of CGST – Central GST, Rs. 45,069 of IGST – Integrated GST and Rs 22,598 crore of SGST – State GST.
The GST that was amalgamated from July 1, 217, includes different central and state tax, service tax, VAT, excise duty and decline in collection indicate a downturn. Hence, GST Council has set up a panel to suggest measures that will revive GST collection.
On October 10, 2019, the GST Council set up a 12-member panel. The panel will not propose tax rate increases or decreases. Rather, it will find ways to widen tax base, prevent evasion, improve voluntary compliance. The main objective of the panel is to augment the revenue other than tax rate increase.
The GST Council has already resisted pressure from industries and automobiles for rate cuts and raised rates on caffeinated drinks that were imposed in September, 2019.
The Government will also face pressure on central government’s fiscal position for reducing corporate tax rate for businesses announced in September 2019.
Category: Economy & Banking Current Affairs