Sushil Modi to head committee to look into GST revenue shortfall faced by states

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The Deputy Chief Minister of Bihar, Sushil Modi will be heading the seven-member group of ministers (GoM) that will look into revenue shortfall being faced by the states after the GST roll-out and suggest steps for augmenting collections. The GST Council, headed by Finance Minister Arun Jaitley and comprising state ministers, had on December 22, 2018, decided to set up the group of ministers to analyse reasons for the shortfall in revenue collections by the states since July 2017.

Besides Sushil Modi, the other members of the committee would include Punjab Finance Minister Manpreet Singh Badal, Kerala Finance Minister Thomas Isaac, Karnataka Rural Development Minister Krishna Byre Gowda, Odisha Finance Minister Shashi Bhushan Behera, Haryana Taxation Minister Capt Abhimanyu and Goa Panchayat Minister Mauvin Godinho.

• As per terms of reference (ToR) of the GoM, the seven-member committee will undertake data analysis using econometric and statistical tools and suggest suitable measures and policy intervention for course correction for revenue augmentation, particularly for the states suffering high revenue shortfall. 

 The committee would also take into account trends of revenue collection before and after implementation of goods and services tax (GST). 

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It would also look into structural patterns of major sectors of the economy impacting revenue collection, including the services sector. 

Among the Indian states, only Andhra Pradesh and five northeastern states including Mizoram, Andhra Pradesh, Manipur, Sikkim and Nagaland recorded a revenue increase post the roll out of goods and services tax (GST).