New Delhi: The 38th meeting of the GST Council met under the Chairmanship of the Union Minister for Finance & Corporate Affairs Nirmala Sitharaman here yesterday. The meeting was also attended by the Union Minister of State (MoS) for Finance & Corporate Affairs Anurag Thakur besides Finance Ministers of States & UTs and senior officers of the Ministry of Finance.
A presentation was made to the GST Council on the issue of revenue, GST rate structure and compensation needs of the States. Before the presentation, the Convenor of GoM on revenue augmentation, Sushil Kumar Modi, Dy CM (Bihar), made opening remarks about the revenue position and future roadmap.
The presentation made thereafter was based on discussions in the Committee of officers of State and Centre on revenue augmentation.
After a precipitous drop in the first 4 months of GST inception, gross revenue trends showed a steady increase since 2017, with steep declines from July to September 2019, and recovering in October and November. Revenue trends since the inception of GST are shown below:
A discussion followed the presentation covering a wide range of issues such as measures for encouraging voluntary compliance, expanding tax base, measures to improve return filing and tax collection, and rate rationalisation. Automation measures such as e-invoice, new return system, QR code on bills were also discussed.
To exchange knowledge about best practices of tax administration, State of UP and UT of J&K made presentations on their effort to improve GST collection, as in the recent past they have shown a healthy growth in compliance.
The GST Council provided necessary guidance on further analysis regarding exemption and concession impact analysis, tax base analysis, sensitivity analysis, and compliance measures needed to keep pace with revenue needs. The Council also directed for expeditious implementation of IT and other initiatives.
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