Revenue Secretary Ajay Bhushan Pandey has said it’s not fair to say that Goods and Services Tax is responsible for the current economic slowdown. Pandey, who is also the Goods and Services Tax Network Chairman and Chief Executive Officer of the Unique Identification Authority of India, said the government had formed a panel to have a “holistic view” on GST rates and that the committee was ready to include all suggestions, including those made by various industries.
The GST collection dropped to a 19-month low of Rs 91,916 crore in September, mirroring a widening slowdown in economy triggered by shrinking consumer demand. This is the second straight month of decline in the GST collection. Pandey said contraction in imports and the failure of some sectors to perform well led to a decline in the GST collection.
“In the last two months, cement, autos, the steel didn’t perform well and on the imports side too, the collection has seen a decline,” he told CNBC-TV18, adding that GST had given “good growth” till two months back and hoped that it would continue to do so. Pandey said the government was working on ways to meet states’ compensation requirements. On the question of declining GST collection, Pandey said it had been a “reflection of how the economy was performing along with collection efficiency”.