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The Central government reference to structural changes to GST arrives in the imprint of plans by the central government to merge the 12% and 18% GST slabs, an idea that has created support among some states. In this article, we will talk with the Panel and recommend structural changes to boost GST revenues. Notification on structural changes to improve GST revenues. The GST panel’s medal to structural changes to GST comes in the wake of plans by the central government to integrate the 12% and 18% GST slabs, an idea that has organized assistance among some states. The government needs to make structural changes in the goods and services tax GST administration and amplify compliance to stimulate revenues, given the necessity to make up for the gap in states’ GST revenue receipts, a parliamentary panel has informed the finance ministry. Due to the Covid-19, numerous states noted revenue losses, impacting GST collections—a development that warrants criteria to improve compliance, the parliamentary standing committee Further, In light of the prevailing economic scenario, the committee would, therefore, requested the government to inaugurate all possible measures, both structural and enforcement related, to improve GST collections, which has in recent months shown an upward trend. Additional Notification by Finance Ministry Further, the panel’s reference to structural changes to GST comes in the wake of proposals by the central government to merge the 12% and 18% GST slabs, an idea that has organized support among some states. The indication is to address the attrition of indirect tax incidence on transactions following the GST rollout. Although some transformative modifications have been brought in to step up tax receipts, India’s tax buoyancy has not been proportionate to the development in income and wealth. In developed countries, the tax to gross domestic product (GDP) ratio is approx 25-26%. Know more about Panel recommends structural changes to boost GST revenues.
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