The average revenue shortfall of the states due to the Goods and Services Tax has fallen to 13% in the ongoing financial year, from 16% in 2017-18, Finance Minister Arun Jaitley said on Friday following the completion of the 30th GST Council meeting.
The Finance Minister said that, while most of the meeting was around procedural aspects, there were two main items on the agenda: a review of the revenue position, and the Kerala government’s request for an additional GST rate to finance the relief and recovery efforts in the state following the recent devastating floods.
Mr Jaitley said that the GST Council had agreed to set up a seven-member Group of Ministers to look into the various aspects of such an additional rate, including whether it should be levied only on Kerala’s taxpayers, or on the entire country.
The GoM’s members will be announced in a few days, Mr Jaitley added, and will submit its reports in a few weeks.
Regarding the state-wise revenue position, the Union Finance Minister said that there were only 10 states with a revenue deficit of more than 20%, and that there were six states that had a revenue surplus.