The government is concerned regarding the Rs 50,000-crore shortfall generated in goods and services tax collections during the year 2017-18. Although, the government hopes to compensate this shortfall with the collection hike of 67% in the year 2018-19 and expects to cut rates before the 2019 elections.
Arun Jaitley, the FM mentioned that the reason for this slowdown was the centre collection which accounted the GST for 11 months only in this fiscal year.
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The GST furnished in March will be accounted in April and will be displayed as total revenue collected in the financial year 2018-19. With the shortfall in revenue collection and lower than computed collections, the government is lacking behind the fiscal deficit target of 3.2% of GDP and remained to end the year with 3.5% this time.
However, GST rates for more than 200 items have been pruned as compared to GST rollout rated, major reasons for revenue slowdown was the GST councils move to adjourn anti-evasion paces such as the reverse charge mechanism to maintain tabs on unregistered traders, and matching invoices of buyers and sellers. Furthermore, the introduction of a GST e-way bill is also delayed till February 1.
The government has as well to restitute stated if their revenue collection growth stands at below 14%. It is expected that the indirect tax move will level up everything possibly soon and the larger tax base in relation to anti-evasion measures revenues will take a flight much quicker in the financial year 2018-19. It is also speculated that the tax revenue collection will increase over 60% in the next fiscal year.
