The latest trend regarding Goods and Services Tax collection indicates improvement in economic revival in the country. Analyse (200 Words)
Refer - Business Line
Enrich the answer from other sources, if the question demands.
IAS Parliament 3 years
KEY POINTS
· Goods and Services Tax is one of the major sources of revenue for the States as it contributes to nearly one-third of their own tax revenues.
· Struck by the Covid-19 pandemic and the subsequent prolonged lockdown, States saw a precipitous fall in the GST collection in the first quarter of 2020-21 (April-June.
· States that were badly hit in terms of GST collection are Kerala, Uttar Pradesh, and Madhya Pradesh. Kerala suffered the worst.
· States that have done remarkably well in terms of GST growth are Gujarat, West Bengal, and Punjab (each more than 110 per cent), while Chhattisgarh, Karnataka, and Odisha (each less than 75 per cent) have performed poorly.
· Besides the “base effect” and higher economic growth, measures like anti-evasion activities including detecting the incidence of fake input tax credit and action against fake billers.
· Although growth in the collection has bounced back for most States, one year of negative growth in GST collection has had a severe consequence on GST compensation.
· The Union government has been also falling short of collection and, more importantly, revenue collections from the GST compensation cess are falling drastically short of demand for the compensation amount.
· As States’ fiscal resources dry up, the impact is felt instantly on their capital expenditure followed by other developmental expenditures.
RAJA MOHAMED 3 years
IAS Parliament 3 years
Try to include data to suppport the trends in GST collection. Keep Writing.
K. V. A 3 years
Pls review
IAS Parliament 3 years
Good attempt. Keep Writing.
