Shortfall in GST Collection

State governments are unlikely to get the full compensation promised for shortfall in goods and services tax (GST) collection as the finance ministry says the amount will be given only through money collected from the cess imposed for this purpose. A key ministry official said states should agree to hike GST or cess rates in the Council meeting, the date for which is yet to be fixed. Goods and services tax (GST) revenue of 23 states till December stands at Rs 15,100 crore lower than last year, a 3.9 percent decline. The assumption of 14 percent assured growth rate aggravates the revenue stress. Key states are in the red, with Punjab’s collection at (-)16%, Uttar Pradesh (-) 11%, Andhra Pradesh (-) 16%, Kerala (-) 12%, Gujarat (-) 6% and Telangana (-) 8%. The data for five states, including Goa, Bihar, and Delhi, could not be accessed. This assurance given by the Centre is a big problem. The GST department comes under Centre but the necessary forces required to back them up is provided by the State. The weak economy has a big role to play.

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