Lok Sabha Question No. 1916 (UNSTARRED), answered on 2018-12-21
Subject: Impact of GST on Revenue Gap
Ministry: FINANCE
Asked by: MANOJ RAJORIA

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA UNSTARRED QUESTION NO. 1916

TO BE ANSWERED ON FRIDAY, THE 21 st  DECEMBER, 2018 30 Agrahayana, 1940, (SAKA)

## Impact of GST on Revenue Gap

1916. DR. MANOJ RAJORIA:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Goods and Services Tax (GST) has been able to bridge the revenue gap of the Government, both at Central and State level and if so, the details thereof;

(b) if  not, the steps taken by the Government to achieve the fiscal targets for the year 2018-19; and

(c) the details of the efforts being made to implement the Fiscal Responsibility and Budget Management Act in letter and spirit?

## ANSWER

## MINISTER OF STATE IN MINISTRY OF FINANCE (SHRI SHIV PRATAP SHUKLA)

(a) & (b): The average gross collection of Central Goods and Services Tax (CGST), State Goods and Services Tax (SGST), Integrated Goods and Services Tax (IGST) and Cess for FY 2017-18 and FY 2018-19 have been Rs. 89885 crores and Rs. 97040 crores (till November'18) respectively. The  GST  collection  in  the  current  FY  (2018-19)  has  been showing improvement compared to last FY (2017-18). Further, the Goods and Services Tax (Compensation to States) Act, 2017 was passed by the Parliament to provide for compensation to the States for the loss of revenue arising on account of implementation of the Goods and Services Tax (GST).

To improve revenue collection, the steps which are being taken include introduction of eway bill, simplification of measures for filing tax returns, steps to capture invoice details of transactions  so  that  the  same  could  be  matched  with  credit  taken  and  verification  of transition  credit  availed  by  tax  payers.  Further,  in  the  GST  regime  tax  base  has  been increased.  At  present,  about  11621024  tax  payers  are  registered  with  GSTIN  which includes both regular tax payers as well as tax payers under composite scheme.

- (c): Implementation of the Fiscal responsibility and Budget Management Act, 2003 is of utmost priority for the Government. Section 3 of the FRBM Act, 2003 which deals with Fiscal  Policy  statements  to  be  laid  before  the  Parliament,  states  that  the  Central Government shall lay the following Statements before the Parliament annually-
1. the Medium-term Fiscal Policy Statement, shall set forth a three-year rolling target for prescribed fiscal indicators with specification of underlying assumptions

2. the  Fiscal  Policy  Strategy  Statement  shall  contain  the  policies  of  the  Central Government  for  the  ensuing  financial  year,  the  strategic  priorities  of  the  Central Government,  the  key  fiscal  measures  and  rationale  for  any  major  deviation  in  fiscal measures and an evaluation as to how the current policies of the Central Government are in conformity with the fiscal management principles under FRBM Act.

3. the  Macro-economic Framework Statement shall contain an assessment of the growth prospects of the economy with specification of underlying assumptions 4. the Medium-term Expenditure Framework Statement shall set forth a three-year rolling  target  for  prescribed  expenditure  indicators  with  specification  of  underlying assumptions and risk involved. The first three statements mentioned above were laid in Parliament along with the Union Budget 2018-19, while the Medium-term Expenditure Framework Statement, 2018 was presented  on  7th  August,  2018.  Section  7  of  the  FRBM  Act  deals  with  'Measures  to enforce compliance'. Section 7 (1) states that the trends in receipts and expenditure in relation to the Budget shall be reviewed on half-yearly basis and the outcome of such review shall be laid in both Houses of Parliament. In compliance to the provisions of the Act,  the  Statement  on Half yearly  Review of the  trends  in  receipts and expenditure  in relation to the budget at the end of the financial year 2017-2018 was laid in Lok Sabha on

3rd August, 2018.

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