The GST Council has decided to set up a seven-member committee to look into revenue shortfall being faced by the states after the GST roll-out, and suggest steps for augmenting collections. The committee would be headed by Deputy Chief Minister and Finance Minister of Bihar Sushil Modi. Other members of the committee include Punjab Finance Minister Manpreet Singh Badal, Kerala Finance Minister Thomas Isaac, Karnataka Rural Development Minister Krishna Byre Gowda, Odisha Finance Minister Shashi Bhushan Behera, Haryana Taxation Minister Capt Abhimanyu, and Goa Panchayat Minister Mauvin Godinho.
1. Analyse reasons for the shortfall in revenue collections by the states since July 2017.
2. Look into account trends of revenue collection before and after implementation of goods and services tax.
3. Identify reasons for deviation in revenue collection trends, compare it with original assumptions worked out at the time of design and implementation of GST.
4. Undertake data analysis using econometric and statistical tools and suggest suitable measures and policy interventions for course correction for revenue augmentation, particularly for the states suffering high revenue shortfall.
5. Structural patterns of major sectors of the economy impacting revenue collection, including the services sector.
6. Only Andhra Pradesh and five northeastern states — Mizoram, Andhra Pradesh, Manipur, Sikkim and Nagaland — have recorded revenue increase post the GST roll out.