GST revenue buoyancy a worry, GoM panels to reassess slabs

GST revenue buoyancy a worry, GoM panels to reassess slabs

As buoyancy in Goods and Services Tax (GST) revenues poses a concern, the ministerial panels to be constituted under the GST Council is likely to also carry out a review the key tax slabs under the indirect tax regime. This will be in addition to rate rationalisation, correction of inverted duty structure, relook at exemptions, e-way bill systems, e-invoices, FASTag data and other technological measures, which would be reviewed by the ministerial panels as part of its broader revenue augmentation mandate.

The lower-than-expected revenue buoyancy and the slipping of the revenue neutral rate under GST is being seen as one of the major concerns for sustenance of the revenue trend going ahead, especially after the legally mandated compensation to states for revenue shortfall from the GST implementation comes to an end in June 2022.

“Revenue (under GST) is a concern. Next two-three months will be focused on steps such as rate rationalisation. The GoM will relook at tax slabs and look at the possibility of merger of some slabs. They may look into it now and recommend changes, which may get implemented later, depending on other factors such as market and economic conditions at that point of time,” a senior government official told The Indian Express.