Despite the series of rate cuts since its July 2017 launch, the shortfalls in GST collections seem to be bridging for many states, in what indicates an improvement in compliance. As a result, the overall GST revenue deficit for states has come down to 10% in April-November 2018 from 20% in the August 2017-March 2018 period, data gathered by FE showed. (The deficit is reckoned against the 14% y-o-y growth target set under the GST compensation law).

GST revenue: States’ deficit falls to just 10 per cent in April-November

By: Sumit Jha | Published: December 31, 2018 6:09 AM

Despite the series of rate cuts since its July 2017 launch, the shortfalls in GST collections seem to be bridging for many states, in what indicates an improvement in compliance.

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The deficit is reckoned against the 14% y-o-y growth target set under the GST compensation law.

Despite the series of rate cuts since its July 2017 launch, the shortfalls in GST collections seem to be bridging for many states, in what indicates an improvement

in compliance. As a result, the overall GST revenue deficit for states has come down to 10% in April-November 2018 from 20% in the August 2017-March 2018 period, data gathered by FE showed. (The deficit is reckoned against the 14% y-o-y growth target set under the GST compensation law).

Among the big states that managed to reduce the shortfall the most are Bihar (18 percentage point reduction between the two periods), Assam (14 pps) and Jharkhand (10 pps). The deficit saw a marginal rise or remained at the same level in case of Tamil Nadu, Karnataka, Gujarat and Kerala. Also, in case of some states like Himachal Pradesh, Punjab, Uttarakhand and Jammu and Kashmir, the shortfall is still very high at over 30%.