PRESS NOTE ON REVENUE 

A presentation was made to the GST Council on the issue of revenue, GST rate structure and compensation needs of the States. Before the presentation, the Convenor of GoM on revenue augmentation Sh. Sushil Kumar Modi, Dy CM (Bihar) made opening remarks about the revenue position and future roadmap. The presentation made thereafter was based on discussions in the Committee of officers of State and Centre on revenue augmentation. The revenue trends since inception of GST as shown below was taken note of - 

GST Gross Revenue Trends

A constructive discussion followed the presentation covered a wide range of issues such as measures for encouraging voluntary compliance, expanding tax base, measures to improve return filing and tax collection and rate rationalisation. Automation measures such as e-invoice, new return system, QR code on bills were also discussed. To exchange knowledge about best practices of tax administration, State of UP and UT of J&K made presentation on their effort to improve GST collection, as in the recent past they have shown a healthy growth in compliance. 

GST Council gave necessary guidance on further analysis regarding exemption and concession impact analysis, tax base analysis, sensitivity analysis and compliance measures needed to keep pace with revenue needs. The Council also directed for expeditious implementation of IT and other initiatives.

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GST revenue trends: directs deeper analysis and expedited IT measures to strengthen compliance and rate rationalisation. Analysis of GST revenue trends highlights the need for revenue augmentation via voluntary compliance measures, tax base expansion, improved return filing and tax collection, and rate rationalisation. The document endorses administrative automation-e-invoice, new return system, QR codes-and calls for further analysis of exemption impacts, tax-base sensitivity and expedited IT implementation to strengthen GST administration and sustain revenue mobilisation.