With some states facing revenue shortfall even after 10 months of GST rollout, Chief Economic Adviser Arvind Subramanian has been tasked with suggesting ways for laggard states to shore up their tax mop-up.
The GST Council in its May 4 meeting had identified five states, including Punjab and Bihar, which face the maximum revenue shortfall following the implementation of the indirect tax regime from July 1, 2017. Tax officers from Punjab and Bihar are likely to meet Subramanian next week, followed by a meeting with Chhattisgarh officers, an official said.
“The GST Council in its last meeting has tasked the Chief Economic Adviser to meet the states which are suffering revenue shortfall post GST implementation to understand the reasons and suggest corrective action,” the official told wire agency PTI.
As per official data based on revenue collection till Feb. 2018, 11 states were facing the maximum revenue shortfall, with shortfall in Bihar and Punjab at more than 40 percent. For Himachal Pradesh, the shortfall stood at 50 percent, while for Uttarakhand and Chhattisgarh the shortfall was around 40 percent and 30 percent, respectively.
While Odisha faced a shortfall of 30 percent, it was 28 percent for Madhya Pradesh and 20 percent for Assam. Besides, Jharkhand, Tripura, Jammu & Kashmir and Puducherry had suffered a revenue gap of over 20 percent.
As per the data, states like Gujarat, Tamil Nadu, Telangana, Andhra Pradesh, West Bengal, and UT Delhi suffered the least shortfall in GST revenue (below 20 percent) compared to monthly revenue to be protected till February.