GST Council reboots panel for system reforms
The Goods and Services Tax (GST) Council has reconstituted a ministerial group tasked with identifying possible sources of revenue evasion, improving coordination between the central and State GST authorities, and reviewing the IT systems in place for implementing the indirect tax.
These changes have been effected in order to bring in new ministers from the States of Andhra Pradesh, Odisha, and Chhatisgarh where new governments have been installed in recent months, as well as replace the representative from Haryana.
The reconstitution of this critical GST panel comes soon after the Council reformulated the ministerial group tasked with recommending a rationalisation of the GST rate structure and its tax rates. The panel, originally headed by former Karnataka Chief Minister Basavaraj Bommai, is now headed by Bihar Deputy CM Samrat Chaudhary.
The Council, which met in late June after an almost nine-month hiatus, plans to take stock of the progress made by this GoM so far, and discuss the roadmap for the much-awaited GST rate restructuring exercise in its next meeting that is expected to be held in August.
Formed in late 2021 after the Council decided to dovetail two separate Groups of Ministers (GoMs) dealing with IT challenges and revenue mobilisation, the GoM on GST system reforms was rejigged for the fourth time on Thursday.
Haryana also has a new representative in the GoM with Finance Minister Jai Parkash Dalal replacing the State’s former deputy chief minister (CM) Dushyant Chautala whose party Jannayak Janata Party parted ways with the BJP-led State government this March.
Odisha is now represented by deputy CM Kanak Vardhan Singh Deo, following the Biju Janata Dal’s defeat in recent Assembly polls. Andhra Pradesh Finance Minister Payyavula Keshav has been included, replacing his predecessor Buggana Rajendranath, after the TDP’s resounding victory in State polls. Similarly, Chhatisgarh is now represented by its Finance Minister O.P. Choudhary, replacing its erstwhile deputy CM T.S. Singh Deo.
The group’s convenor is Maharashtra Deputy Chief Minister Ajit Pawar, who was its original convenor as part of the MVA government in the State. After the MVA government lost power, Devendra Fadnavis had replaced Mr. Pawar, but he was reappointed in that role in August 2023 after taking over the finance portfolio from Mr. Fadnavis in the BJP-Shiv Sena-NCP alliance now running the State.