Key Highlights of 30th GST Council Meet
GST council had its 30th meeting post introduction of the radical change in the Indian taxation system and has taken up following matters on the agenda:
1. Discussion on Revenue gaps for States:
Goods and Services Tax Council took analysis of collections of states under the new regime which missed target in each month except April 2018, although the average gap has narrowed since last year.
On account of the shortfall, Centre has provided compensation of INR 41,147 crore to the states during FY 2017-18. It was highlighted that states faced an average shortfall of 16% shortfall in GST collections in the financial year ended March 2018, post implementation in July 2017, however, deficit narrowed to 13% post April 2018 in the current year which was 16% in the first year.
GST collections were recorded at INR 93,960 crore in August 2018. A state wise analysis of deficit in revenue in comparision to erstwhile regime was discussed and stood as follows:
|
S. No. |
States |
Change in revenue collection |
|
1. |
Mizoram, Arunachal, Manipur, Nagaland, Sikkim and Andhra Pradesh |
Revenue exceeded the target required at 14% annual growth rate. |
|
2. |
Puducherry |
42% shortfall |
|
3. |
Punjab, Himachal Pradesh and Uttarakhand |
~35% shortfall |
|
4. |
Jammu and Kashmir |
28% shortfall |
|
5. |
Chhattisgarh |
26% shortfall |
|
6. |
Goa |
25% shortfall |
|
7. |
Odisha |
24% shortfall |
|
8. |
Karnataka and Bihar |
20% shortfall |
Hon’ble FM reiterated the target to neutralize the state deficit by 2022.
2. Kerala calamity Cess:
With the different propositions being received for The Council has set up a seven-member ministerial panel under Bihar Deputy Chief Minister Sushil Modi to examine the legality of imposing a new tax on certain goods and services to raise resources for natural calamity-hit states like Kerala and meeting the cost of reconstruction in the aftermath of flood. This would set the first precedence of its type in the GST so far.
3. Other matters
Certain discussions were made on 1% Pan-India tax in commodities however, final decision and list has not been discussed yet.
FM even focused on the registrations with a whooping number of 74.61 lakhs during the year.
Unfortunately, following matters expected to be taken up were not discussed in the meeting:
1. GST rate change on any products.
2. No decision taken on Petrol & diesel under GST.
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TheTaxTellers team
