NEW DE;LHI : As a result of continued reforms in Goods and Services Tax (GST) undertaken by central and state governments on the recommendations of the GST Council, buoyancy in GST revenue has been achieved in the recent months, finance minister Nirmala Sitharaman informed Parliament on Monday.
NEW DE;LHI : As a result of continued reforms in Goods and Services Tax (GST) undertaken by central and state governments on the recommendations of the GST Council, buoyancy in GST revenue has been achieved in the recent months, finance minister Nirmala Sitharaman informed Parliament on Monday.
The average monthly gross GST collection for the first quarter of the FY 2022-23 has been ₹1.51 lakh crore against the average monthly collection of ₹1.10 lakh crore in the first quarter of the last financial year showing an increase of 37%, the minister said in a written reply. Sitharaman was answering questions on GST compensation.
The minister said that a few states including Telangana have requested for extension of payment of GST compensation beyond the transition period of five years ending June 2022.
As per section 18 of the Constitution (One Hundred and First Amendment) Act, 2016, Parliament shall, by law, on the recommendation of the Goods and Services Tax Council, provide for compensation to the states for loss of revenue arising on account of implementation of the goods and services tax for a period of five years, the minister explained. That explanation means a legislative change may be needed for extending compensation beyond five years if the government decides to do so.
The Government, on the recommendations of the GST Council, has taken several
measures for reforms in GST which include structural changes like calibration of GST rates, correcting inverted duty structure and pruning of exemptions, the minister said in response to a separate question on GST receipts.