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Sushil Modi to head GoM on GST revenue shortfall faced by states

Among the union territories, Puducherry is facing maximum shortfall of 43%

Press Trust of India  |  New Delhi 

sushil modi

Sushil will to look into revenue shortfall being faced by the states after the roll-out, and suggest steps for augmenting collections, a Council notification said.

The Council, headed by and comprising state ministers, had on December 22, 2018, decided to set up a group of ministers (GoM) to analyse reasons for shortfall in revenue collections by the states since July 2017.

Several states including Punjab, Himachal Pradesh, Chattisgarh, Uttarakhand, Jammu and Kashmir, Odisha, Goa, Bihar, and are facing revenue shortfall following the implementation of (GST). These states are facing revenue shortfall in the range of 14-37 per cent in the April-November period.

Among the union territories, Puducherry is facing maximum shortfall of 43 per cent.

As per terms of reference (ToR) of the GoM, the Modi-led committee will undertake data analysis using and suggest "suitable measures/policy intervention" for course correction for revenue augmentation, particularly for the states suffering high revenue shortfall.

Among other things, the committee would also take into account trends of revenue collection before and after implementation of (GST).

It would also look into structural patterns of major sectors of the economy impacting revenue collection, including the services sector.

The GoM, as per the ToR, would identify reasons for deviation in revenue collection trends, compare it with original assumptions worked out at the time of design and implementation of GST.

The other members of the GoM include Manpreet Singh Badal, Thomas Isaac, Krishna Byre Gowda, Finance Minister Shashi Bhushan Behera, Capt Abhimanyu and Panchayat Minister

Out of 31 states, only and five north eastern states -- Mizoram, Andhra Pradesh, Manipur, and -- have recorded revenue increase post the GST roll out.

The central government has released Rs 48,202 crore as GST compensation to states during April-November 2018, higher than the Rs 48,178 crore paid in the previous financial year.

GST was rolled out on July 1, 2017. As per the GST law, the centre compensates states to ensure that their revenue is protected at the level of 14 per cent over the base year tax collection in 2015-16.

First Published: Sun, January 13 2019. 10:30 IST