HomeEconomy NewsAs states face revenue shortfall, GST council to plug collection leakages

As states face revenue shortfall, GST council to plug collection leakages

As states face revenue shortfall, GST council to plug collection leakages.

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By Timsy Jaipuria  July 20, 2018, 7:50:08 PM IST (Published)

As states face revenue shortfall, GST council to plug collection leakages
With Goods and Services Tax (GST) council meeting tomorrow, protecting revenue will continue to remain a concern.


Sources indicated that the GST council will have a detailed discussion on the current revenue trends, states will too, point at compliance issues to be treated as one of the top priorities.

The GST revenue mop-up has not been up to the mark in the past months.

The collections, however, have started picking up with rising to Rs 95,610 crore in June from Rs 94,016 crore in the previous month.

In April 2018, the collections from GST was over Rs 1.03 lakh crore.

As the introduction of GST completes one year, the monthly average collection in the last financial year was Rs 89, 885 crore.

Union finance secretary Hasmukh Adhia on July 1 had said that Rs 1 lakh crore revenue is “not the norm still”.

"We hope to bring it (GST revenue) to the level of Rs 1 lakh crore (every month),” he added.

Expressing discontent with the revenue leakages, Adhia had added that if bogus bills are not issued, then revenues would improve further in the coming months.

“The fact that the revenues are not in tune with the expectations, the council is likely to push for enforcement measures to stop revenue leakages,” sources added.

If one takes a closer look at the numbers, out of 31 states and union territories, only three states have revenue surplus since GST has kicked in.

Arunachal Pradesh and Mizoram have a revenue surplus of 18 percent between August 2017 and June 2018 followed by Manipur at nine percent.



Maximum revenue shortfall of 43 percent was recorded for Puducherry again between August 2017 and June 2018.

Manufacturing states like Maharashtra, Gujarat, Rajasthan and Delhi continue to have revenue shortfall.

Whereas, on the contrary, north eastern states are performing better.

Let’s see what will be the measures council decides to plug the revenue leakages.
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