Question : Single Tax Structure of GST

(a) whether the confusion over Goods and Services Tax (GST) has not yet been overcome even after three years of its implementation and if so, the details thereof;

(b) whether the problems of businessmen have increased due to frequent changes in tax slabs and other rules and if so, the details thereof;

(c) whether the revenue of States has been adversely affected and their revenue has declined;

(d) if so, whether the Government is contemplating to restructure the GST and implement the single tax structure of GST and if so, the details thereof; and

(e) whether it has been discussed with States or not and if so, the details thereof?

MINISTER OF STATE FOR FINANCE (SHRI ANURAG SINGH THAKUR)

(a) The Government launched extensive outreach and awareness campaigns across the country to sensitize taxpayers and citizens about salient features and procedures under GST. Through issuance of Circulars, notifications and by making changes to GST laws and rules, it has been the endeavor of the Government to simplify tax regime and clarify queries of taxpayers.

(b) No Sir. Changes in tax slabs and rules under GST are carried out on the basis of recommendations of the GST Council which takes in to consideration the feedback and suggestions received from various stakeholders, including business and trade bodies.

(c) No Sir. The gross revenue of States from GST including SGST and IGST settlements (both regular and ad-hoc) has increased from Rs. 4,67,556 crores in April-February, 2018-19 to Rs. 4,76,690 crores in April-February, 2019-20.

(d) & (e) The rate structure under GST has evolved after extensive deliberation in the GST Council which is a constitutional body constituted under Article 279A of the Constitution, comprising the Finance/Taxation Ministers of all State Governments and chaired by the Union Finance Minister. The GST Council has reviewed the rates in a number of meetings and has suggested revision in GST rates on around 400 commodities and 77 categories of services since July, 2017. As the revenue stabilizes at comfortable levels, the Council may review and rationalize the rates into fewer slabs.