Will meet FY-18 tax revenue aims if current rate of GST collection persists: Finance Secretary

Will meet FY-18 tax revenue aims if current rate of GST collection persists: Finance Secretary

India News

After the first major overhaul of the goods and services tax (GST) rates last week, wherein the GST Council reduced rates on 210 items, Finance Secretary Hasmukh Adhia says that the government will achieve FY-18 tax revenue target. “We will meet FY-18 tax revenue aims ,if the current rate of GST collection persists,” Hasmukh Adhia told BTVi, adding that the government is done with major rejig for now. For the year ending March 2018, the government had budgeted Rs 9.68 trillion revenue collection from customs and GST.Just last month, Vanaja Sarna the chairperson of Central Board of Excise and Customs (CBEC) had said that GST may hamper government’s revenue collection target. “The revenue collection target from customs and GST, which put together is Rs 9.68 trillion for the current fiscal, seems difficult for the department (to achieve) at the moment, keeping in view the recent GST rollout,” PTI reported Vanaja Sarna as saying.In the GST Council meet held on Friday, out of the total 210 items from which the tax was reduced, 180 were in the top 28% bracket. GST Council member and Bihar state finance minister Sushil Kumar Modi said on the sidelines of the meeting that the Council had lowered tax rates on a wide range of items, bringing down the number of items remaining in the highest slab of 28% from 227 to only 50. “The GST Council has decided to keep only 50 items, mostly demerit, sin and luxury goods in the 28% bracket,” he said post meeting.Hasmukh Adhia also said that higher compliance will offset losses from GST rate cuts. Further, the recently appointed Finance Secretary said that the government is yet to start talks on inclusion of petroleum products under GST. He explained that lowering GST on cement would have led to revenue loss of Rs 10,000 crore. Last month, oil minister Dharmendra Pradhan had said that efforts are on to build a consensus with the state governments over bringing in petroleum products under the ambit of the Goods and Services Tax (GST).