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Govt jittery on falling tax collection: Modi to replace Sitharaman as GoM chief

By Indian Mandarins- 11 Dec 2019
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In the alarming economic situation in the country, augmenting tax collection is one of the primary concerns of the government to deal with as Central GST collection fell short of the budgeted estimate by nearly 40 per cent during the April-November period of 2019-20. But whether it is a knee jerk reaction or smooth transition, composition of GoM on IGST has been changed after Union finance minister Nirmala Sitharaman, who was heading the GoM, has opted out of the ministerial panel. Bihar deputy chief minister Sushil Kumar Modi will now head the GoM. What is so alarming that the government is desperate:

  1. Actual IGST collection during April-November stood at Rs 3,28,365 with budgeted estimate at Rs 5,26,000 crore
  2. The GoM will deliberate on IGST issues and submits its recommendation to the Union finance minister and GST council chairperson
  3. States had pegged the pending dues at around Rs 50,000 crore. Representatives and finance ministers of states had met Sitharaman to press their dues
  4. Sushil Modi had headed the seven-member committee to look into the matter of revenue shortfall witnessed by the states following GST rollout
  5. GoM on IGST was constituted on December 4 with Sitharaman as its convenor
  6. GST Council likely redo four tax slabs – 5%, 12%, 18%, and 28% – to three  – 8%, 18%, and 28% to increase tax revenue
  7. Tax rate on branded cereals, mobile phones, pizzas, air travel, air-conditioned rail travel, cruises, high-end hospital rooms, paintings, branded garments, and fine fabrics such as linen and silk may be increased
  8. Main purpose of the GST Council meeting on December 18, is to work out a way to address falling revenues
  9. The GST regime promises a 14% annual growth in revenues of the states.
  10. Sitharaman, who was Chairperson of the GST Council, could not have headed the GoM as its report need to be submitted to the chairperson

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Indianmandarins.com, an initiative of New Media Network, is a multi-media initiative for the fast and real-time dissemination of news and information related to civil services, central PSUs and other institutions that play a critical role in governance, administration, corporate governance, and public life in India. We aspire to provide our esteemed readers with news breaks and situation analysis in the above-mentioned domain of operations. Currently, we are available at www.indianmandarins.com. We are now planning to branch off into print publication and few other related business initiatives.