India orders biggest review of GST |
Two years after its launch, the Indian government has begun the biggest review of Goods and Services Tax - including a possible resetting of rates along with a scrutiny of the slabs-to tone up collections and plug leakages. The task has been assigned to a 12-member committee of state and central government officials to "augment GST collection and administration". The terms of reference indicate the panel should suggest systemic changes to prevent misuse, improve voluntary compliance, boost overall compliance monitoring and suggest anti-evasion measures. Govt may look at resetting of rates along with a scrutiny of the slabs-to tone up collections and plug leakages GST collections have slowed down in recent months and have grown at a shade under 5% during the first half of the current financial year, against the target of 13%. GST collections have slowed down in recent months and have grown at a shade under 5% during the first half of the current financial year, against the target of 13%. At last month`s meeting of the GST Council, Finance Commission chairman NK Singh had flagged the need to review the slabs, which currently stands at 5%, 12%, 18% and 28%.
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