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News GST

  • Dec 16, 2019
  • States divided on raising rates: GST Council may discuss plugging revenue leakage

    Several measures aimed at plugging revenue leakages under the goods and services tax (GST) regime are expected to figure at the upcoming GST Council meeting on Wednesday as the Centre and the states look to perk up collections. A concept paper based on the report of the committee of officials on revenue mobilisation is likely to be presented to the council, said a government official. A row has also been brewing between states and the Centre about releasing compensation payments. The states remain divided on the issue of raising rates or carrying out a significant revamp of the structure at this time. Punjab and Kerala have backed raising rates or tweaking them to make up for the revenue shortfall while others do not see this as an opportune time due to the economic slowdown. A final call on this will be taken by the GST Council.