Ahead of GST Council meet, states flag increasing revenue shortfall

The crucial GST Council meeting, to be held in Delhi on Thursday, will be chaired by Finance Minister Arun Jaitley

The Group of Ministers (GoM) to look into the implementation of information technology for the Goods and Services Tax Network (GSTN) has raised concerns over the increase in shortfall in average revenue for states under the GST regime. This, coupled with subdued collections under the composition scheme, indicated that traders may be continuing to evade taxes or under-report revenues.
 
Average revenue shortfall for states in December stood at 20.7 per cent and 20.9 per cent in November, the two recent months when the Narendra Modi government brought in several measures, such as tweaking tax rates, increasing incentives, providing relief