Sushil Modi to head GoM on GST revenue shortfall faced by states

  • Bihar Deputy Chief Minister Sushil Modi will head the seven-member committee to 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 a group of ministers (GoM) to analyse reasons for shortfall in revenue collections by the states since July 2017.

  • Several states including Punjab, Himachal Pradesh, Chattisgarh, Uttarakhand, Jammu and Kashmir, Odisha, Goa, Bihar, Gujarat and Delhi are facing revenue shortfall following the implementation of goods and services tax (GST).  Among the union territories, Puducherry is facing maximum shortfall of 43 per cent.

  • Out of 31 states, only Andhra Pradesh and five north eastern states — Mizoram, Andhra Pradesh, Manipur, Sikkim and Nagaland — have recorded revenue increase post the GST roll out.

Points to remember:

  1. Head of the committee?
  2. Union Territory with maximum shortfall of revenue following implementation of GST?- Puducherry.
  3. No. of states with positive revenue following implementation of GST?- 6

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