Fin commission chief calls for changes in GST structure

Finance commission chairman N K Singh has recently called for major changes in the GST structure, inclusive of reducing the cumbersome compliance procedures and also doing away with frequent rate changes and to improve collection. He also mentioned for a rationalisation in centrally sponsored schemes, and blamed the government for not clearly defining the role of the Niti Aayog which, as of now, does not have any powers to take financial decisions.

The comments from the chief of the commission — which decides on the revenue distribution between the Centre and the states — come amid concerns about the continuous fall in GST collection that has not touched the targeted Rs 1 lakh crore every month, barring one. “If you do not simplify GST, you will be defeating the very purpose and intention of why we took this far reaching step,” Singh said SBI chairman Rajnish Kumar.

“The cumbersomeness of compliance is one of the important factors why I believe that there is a huge scope for improving the revenue realisation from GST,” he added. “Equally, I do believe the frequency with which the rates have been changed is unbelievable. You are playing with the rates of taxation, these are serious issues and these are not rates of mutual accommodation,” he added.