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GST structure to be reviewed on revenue concerns
Kanakkupillai

• www.Kanakkupillai.com

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GST Council

• The Goods and Services Tax (GST) Council is set
  to embark on a comprehensive review of the tax
  structure in the wake of growing revenue concerns
  when it meets on December 18.
• The review will include exempted items, GST and
  compensation rates and revenue augmentation
  measures. The GST Council secretariat has sought
  inputs from state governments on all these
  issues.

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Central Complains GST

• The move comes against the backdrop of states
  complaining about the Centre delaying
  compensation payments to them as revenues have
  slowed. However, after declining for two
  consecutive months, GST collections grew 6 to Rs
  1,03,492 crore in November following the festive
  season sales push.

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Finance Ministry

• As regards the rationalization of the taxation
  too many rates, too many high rates and so on, we
  are having good conversation with all the
  states, said Finance Minister .
• The government wants to ensure that essential
  items are kept at the lowest rate if not exempted
  from GST. But for the rest of them we are trying
  to rationalize.

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GST Slash Rate

• GST has as many as seven rates though the bulk of
  goods fall in the 12 and 18 slab. The thinking
  is that these two could be merged into a single
  slab of around 15.
• Experts said the GST Council may opt for revenue
  augmentation steps.

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GST Last economic Year

• In the past year or so, the government has taken
  several steps to simplify compliance, going after
  tax evaders through more efficient use of
  technology and data analytics without having to
  resort to increasing tax rates.
• As such, unless the government is willing to
  consider taxing education and healthcare, there
  may not be many items under exempt schedule that
  can be brought under GST easily, said Pratik
  Jain, national indirect taxes leader,

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Conclusion

• However, on the compensation, government might
  be running out of options as states need to be
  compensated for revenue shortfall, which is
  higher than expected.

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