FM seeks to debunk notion GST revenues “pocketed by Centre”
Finance minister Nirmala Sitharaman on Monday sought to dispel the “myth” that all GST collections are “pocketed by the Centre.”
“GST contributes significantly to state revenues – states receive 100% of SGST collected in that state, 50% of IGST (i.e. on inter-state trade), and a significant portion of CGST, that is 42%, is devolved to the states based on the Finance Commission’s recommendations,”the minister posted on X
“GST has improved tax buoyancy from 0.72 (pre-GST) to 1.22 (2018-23). Despite compensation ending, state revenues remain buoyant at 1.15,” she said
Two significant milestones were reached in the larger GST architecture, the minister said, referring to the appointment of the president of the GST Appellate Tribunal (GSTAT) and gross GST collections crossing a landmark of Rs 2 trillion in April.
Earlier on Monday, Sitharaman administered the oath to Sanjaya Kumar Mishra as the President of GSTAT. “Mishra’s appointment marks the beginning of the operationalisation of the GSTAT, a crucial body for resolving GST-related disputes,” a release by the finance ministry said.
