Two years after the launch of GST, the Central Government has started its biggest review. Under this, the slabs and rates of Goods and Services Tax can be fixed once again. As part of efforts to prevent leakage and increase collection, the government has now started a review. The task of reviewing this system of one country, one tax has been entrusted to a committee of 12 officers of the central and state governments. The PMO proposes to negotiate GST with the state secretaries. A decision has been taken to constitute this panel just before that. States can be asked to increase the collection of GST in the meeting. It is believed that the panel will consider how to prevent the misuse of GST. Apart from this, such rules should be made that people will want to join the GST ambit voluntarily. The panel will also consider avoiding GST and preventing other leakages from sectors like restaurants. On behalf of the GST Review Committee, the state governments may be asked to consider bringing some products into the GST slab.
Two years after the launch of GST, the Central Government has started its biggest review.
GST growth has been less than 5%
GST collection has seen weakness in the last few months. In the first half of this financial year, GST collections grew at less than 5 per cent, while the target was more than 13 per cent. However, it is also believed that due to the slowdown, there has been a decrease in GST. This situation has also arisen especially due to the decrease in auto sales and floods.
The state said, there is a deficiency in the design of GST
Apart from this, the authorities are also concerned about the correct implementation of GST in the states. Explain that in case of annual growth of less than 14 percent, the central government has said to compensate the states. Significantly, in the last few weeks, the states ruled by opposition parties have attacked the center for collection in GST. Opposition governments say that the reason for the lack of collection is the lack of designing. Apart from this, many states have also cited tax cuts as the reason for the reduction in collections.