Revenue shortfall of manufacturing states lower than consuming ones despite GST

For Maharashtra, the shortfall was 2 percent, while for Tamil Nadu it was 3 percent, Sushil Modi said.

The Chairman of GST Implementation Committee Sushil Modi today said that the revenue shortfall of manufacturing states was lower than the consuming ones despite GST being a destination-based tax.

"It is surprising to see the manufacturing states like Maharashtra, Tamil Nadu, Gujarat and few others were experiencing a lesser shortfall in GST (Goods and Services Tax) revenue collection despite being manufacturing states," he told reporters here.

For Maharashtra, the shortfall was 2 percent, while for Tamil Nadu it was 3 percent, he said.

For consuming states like West Bengal, the shortfall was 10 percent while for Uttar Pradesh it was 8 percent and Bihar at 30 percent, he said on the sidelines of an Institute of Chartered Accountants of India (ICAI) event here. The manufacturing states were apprehending that they would lose revenue as GST was a consumption-based tax.

"It is due to the huge base of the services sector in the manufacturing states and the shortfall they face now will be wiped out very shortly," Modi, who is also Bihar's Deputy Chief Minister, said. He said the priority of the GST Council for 2018 was to simplify GST returns.

Regarding e-way bill, he said that the council had taken a decision to attach RFID (radio frequency identification) tags on all vehicles traveling between states and also install GPS which would help in integrating various databases and detect whether anyone was evading tax.

He also urged the composite dealers to pay taxes as evasion was taking place.

The vice-chairman of Indirect Tax Committee of ICAI Sushil Goyal said that chartered accountants would work closely with the government to see that GST was working smoothly.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)