GST revenue conceals more than it reveals

It can be argued that the GoI is utilising the IGST and Compensation Cess Fund Accounts simultaneously as a source of revenue and as a source of ways and means financing

Data on GST revenue is now available from several official sources. An examination of these numbers raises three concerns. These relate to recognition of revenue, reporting of revenue and allocation of revenue. We focus only on the revenues from the IGST and Compensation cess for the year 2017-18.

Recognition of revenue

Article 269A of the Constitution, specifies that the state share of the IGST together with the CGST paid set off against IGST payable shall not  form part of the Consolidated Fund of India (CFI). Further IGST revenues are to be allocated between the Centre and the states complying with the IGST Act, the IGST rules and