Finance Commission Chief: GST an iconic tax reform, will improve compliance

Fifteenth Finance Commission Chairman N K Singh on Friday said goods and services tax has been an iconic taxation reform that will improve compliance in country.

N K Singh on GST

"GST (goods and services tax) was a far-reaching iconic reform related to share of resources between central and state governments. It is indeed a rical tax reform," Singh said at India Economic Forum Skoch event.

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India h shifted to this new indirect tax regime from July 2017 which aims to bring down tax compliance across country and create a large single market. It was formed after amalgamation of 17 various central and state levies, including excise duty, service tax and value-ded tax.

"Let it not be misunderstood when many critics have said that GST is a failure. This is exactly not a failure, this in my view an outstanding attempt to bring about a rical change in architecture of taxation which will have many multiplier gains in terms of having simplicity of tax structure," he said.

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Reduced GST collection

In September, country's GST collection h fell sharply to a 19-month low of Rs 91,916 crore. This was second straight month of decline in GST collections. government h collected Rs 98,202 crore as GST in August and Rs 94,442 crore mop-up in same month a year ago. Cumulatively, during April-September, GST collections totalled Rs 6.06 lakh crore. In comparison, tax collections in corresponding period of previous fiscal were Rs 5.78 lakh crore.

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