GST COUNCIL

gstn:-rastogi-appointed-as-senior-vp

GSTN: Rastogi appointed as Senior VP

Dheeraj Rastogi (IRS C&CE:1994) appointed as Senior Vice President (Value Added Services) in Goods and Services Tax Network (GSTN) on deputation basis for a period upto 25.02.2024. Presently, he is working as Joint Secretary, GST Council Secretariat.

03 Mar 2020
govt-jittery-on-falling-tax-collection:-modi-to-replace-sitharaman-as-gom-chief

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

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

11 Dec 2019
gstn:-rastogi-appointed-as-senior-vp

GSTN: Rastogi appointed as Senior VP

By IndianMandarins 03 Mar 2020

Dheeraj Rastogi (IRS C&CE:1994) appointed as Senior Vice President (Value Added Services) in Goods and Services Tax Network (GSTN) on deputation basis for a period upto 25.02.2024. Presently, he is working as Joint Secretary, GST Council Secretariat.

govt-jittery-on-falling-tax-collection:-modi-to-replace-sitharaman-as-gom-chief

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

By IndianMandarins 11 Dec 2019

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

over-rs-1-trillion-gst-collection:-a-sigh-of-relief-for-sitharaman

Over Rs 1 trillion GST collection: A sigh of relief for Sitharaman

By IndianMandarins 02 Dec 2019

In a situation when GST collection has become a parameter of economic health of the country, a seven-month high recovery in November crossing the Rs 1-trillion gives a sigh of relief to the government. However, this rise is attributed to festive season demand and anti-evasion measures by the government but it is still short of its target that is around Rs 1.18 trillion.

The GST mop-up grew by 6 per cent in November over the corresponding period last year to Rs 1.03 trillion, against Rs 95,380 billion in October. These figures are for October, collected in November.

Although the collection figures come as a breather for the government, it is lower than the expected collection rate needed to meet the steep target for 2019-20 (FY20). Being a festival month, GST collection on domestic transactions witnessed a 12 per cent growth — the highest during the year. GST collection on imports continued to see negative growth of (-)13 per cent, against (-)20 per cent in October.

This is the eighth time since GST inception in July 2017 that the monthly collection has crossed the Rs 1-trillion-mark. Also, the November 2019 collection is the third-highest monthly collection since the introduction of GST, next only to April 2019 and March 2019 collections.

pm's-agri-committee:-officers-to-be-selected-on-rural-track-records

PM's agri committee: officers to be selected on rural track records

By IndianMandarins 17 Jun 2019

Officials have begun pitching for inclusion in the top-level committee to be formed soon for drafting a blueprint for structural reforms in agriculture. Since this new committee would have several central ministers and CMs like the previous GST Council and committees, all senior officers are vying for a place on the committee.

 

Since its formation may take a while, Niti Aayog vice-chairman Rajiv Kumar and CEO Amitabh Kant may like to pick up officers who are more tuned with the PM's vision.

 

The formation of the committee was announced by the PM during the fifth governing council meeting of the Aayog.

 

On the Agenda of the meeting were the following items:

Transforming Agriculture: Need For Structural Reforms With Special Emphasis On Reforming Agriculture Produce Marketing Committee (APMC) Act; and Essential Commodities Act (ECA) 

 

The following additional items were also there:

  • Rain-Water Harvesting
  • Drought Situation and Relief Measures
  • Aspirational Districts Programme – Achievements And Challenges

 

The Prime Minister called upon all the CMs, except a few absentees, to reform the agri-economy to generate employment and improve rural terms of trade.

 

The core agenda items included the need to review the implementation of the  Agriculture Produce Marketing Committee (APMC) Act and possible reform in the form of the Model APMC Act as well as exploring changes in the Essential Commodities Act, to ensure fair remuneration for the farmers, streamlining of supply, driving more investment into the sector and predictability of policy at national and regional levels.

 

The PM emphasized the need for undertaking structural reforms in agriculture including encouraging corporate investment, strengthening logistics and focusing on food processing.

 

NaMo appreciated the efforts of the States towards water conservation and urged all States to streamline and implement innovative water management measures. The creation of the Ministry of ‘Jal Shakti’, he pointed out, was a key step by the Union Government to develop an integrated and holistic perspective on the water as a developmental resource.

 

There was broad consensus on reducing water wastage, promoting efficient water conservation practices across States, with rain-water harvesting to be undertaken at the household and community level with proactive policy and investment support. Various Chief Ministers presented best practices from their respective states which can serve as templates for replication across the country.

 

Many States such as Maharashtra, Rajasthan, Telangana, Gujarat, and Karnataka have adopted good practices in water conservation and rainwater harvesting. Some innovative steps include the Jalyukt Shivarin Maharashtra which made 11,000 villages drought free, Mukhya Mantri Jal Swavalamban Abhiyaan which resulted in five feet rise in groundwater in 21 districts, and Mission Kakatiya in Telangana which irrigates 19 Lakh Acres. Similarly, Sujalam Sufalam in Gujarat and artificial recharge scheme in Karnataka show that determined action produces good results. The spirit of the meeting was to build on the strength of every State so that each State can learn from the innovation and best practices of other States.

 

The Governing Council also reviewed the implementation of the Aspirational Districts Programme, which has emerged as a major policy innovation in driving inclusive growth. Rapid progress has been achieved across all Aspirational Districts that have participated in this program in 49 key performance indicators of human and social development. Various Chief Ministers noted the success of the program in their respective States and discussed possible schemes for extension of the program to rapidly develop blocks in remote and difficult areas so that the spirit of inclusive development is effectively enforced. The Prime Minister commended the district administration teams on implementing several ‘out-of-the-box’ ideas in the Aspirational Districts resulting in significant transformation in many districts.

 

The Prime Minister also reaffirmed the commitment of the Government to combat Left Wing Extremism (LWE), noting that many of the aspirational districts are affected by Naxal violence. He assured the Council that the Ministry of Home Affairs will coordinate with all affected States to decisively end LWE violence and drive the agenda of development in these regions.

 

To achieve the goal of becoming a five trillion dollar economy by 2024, the Prime Minister urged States to aim at increasing their economy by 2 to 2.5 times, which would also increase the common man’s purchasing power. He called upon Chief Ministers to study their State's export potential and work on export promotion.

 

Central ministers and state chief ministers also discussed ways of boosting manufacturing activities and exports to realize the goal of the Indian economy expanding to $5 trillion by 2024. At the beginning of the meeting, Modi had urged all states to work together to tackle socio-economic problems and to make India a $5 trillion economy by 2024, which he said was a "challenging, but achievable" goal.

 

"We cannot be a $5 trillion economy unless states become champions in manufacturing and exports," Niti Aayog chief executive officer Amitabh Kant said.

Rajiv Kumar said India's potential to make gains in the global market should be tapped. "Given what is going on in the global economy today, this is the time we should make the effort to benefit from the gaps emerging in the supply chain in global markets."

 

Kumar also said the Centre will find the contribution of state chief ministers in the Council meeting useful for the Union Budget for FY20, which will be presented in the first week of July.

 

The Council also discussed ways of accelerating developments of the J&K economy. Mining states such as Goa brought the attention of central ministers to their declining mining output. North Eastern states sought logistics support for exporting to other Asian economies. Punjab chief minister Capt. Amarinder Singh, who could not attend the meeting as he was indisposed, circulated his speech at the meeting, seeking the Central government's support for tackling the water crisis. Singh sought a one-time debt waiver to mitigate the distress of indebted farmers and double the annual assistance under the PM-KISAN scheme to ₹12,000 for farmers. He also sought inclusion of farm workers under this scheme.

politicking-begins-at-gst-council

Politicking begins at GST Council

By IndianMandarins 31 Dec 2018

Political dynamics at the GST council has changed. Following its victory in three states of Chattisgarh, MP, and Rajasthan, Congress has opted for engaging the BJP on GST issue.

 

For instance, the meeting of December 22 saw some Congress state ministers opposing cuts in tax rates of some products to 18% from 28%.

This provoked representatives of BJP-ruled states to demand that Congress' opposition be recorded in the minutes of the council as it contradicted the Congress party's public demand that all goods be taxed at 18%.

 

Congress state government representatives, on the other hand, objected to Prime Minister Narendra Modi making an announcement with respect to reducing the number of items in the 28% slab ahead of the meeting of the council, the apex decision-making body for GST.

 

The council had thus far managed to keep politics out of its deliberations, with most issues getting decided by consensus. This situation may not last any longer.

 

Already, in a letter to Union finance minister Arun Jaitley, Punjab finance minister Manpreet Badal has sought the inclusion of electricity, real estate and petroleum products under GST. "We may also have a look at the entire gamut of tax rates and exemptions so that a long-term blueprint is available for our forward path," he said.

 

He has also sought reconstitution of the law review committee, in view of the upcoming general election, to look at the entire law holistically. "We should avoid the temptation of another knee-jerk reaction and work towards making our GST truly world-class," said Badal. 

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