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Letter to BS: No such concept of revenue-neutral rate any more under GST

Revenue- neutral rate was a concept when the GST was first introduced

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Business Standard
This refers to the editorial “Fixing the GST” (December 9). In the last sentence, it has been said that now a revenue-neutral rate should be worked out. In the interest of clear thinking, I am clarifying that there is no such concept of revenue-neutral rate any more.

Revenue- neutral rate was a concept when the GST was first introduced. The idea then was to find rates of duty which would fetch same total duty as was being collected earlier. Now more than two years are over and the government is finding the collection falling short compared to the target of Rs