GST Council Reconstitutes GoM for Sector-Specific Tax Policy Enhancements
The Goods and Services Tax (GST) Council has reconstituted the Group of Ministers (GoM) on GST revenue analysis to address sector-specific tax policy issues and explore unified enforcement strategies to combat tax evasion. This decision was made during the Council’s 55th meeting on December 21, 2024.
The restructured GoM is chaired by Goa Chief Minister Pramod Sawant and includes members from various states: Bihar (Samrat Chaudhary), Chhattisgarh (O P Choudhary), Gujarat (Kanubhai Desai), Andhra Pradesh (P Keshav), Maharashtra (Ajit Pawar), Punjab (Harpal Singh Cheema), Tamil Nadu (Thangam Thennarasu), and Telangana (M B Vikramarka).
The expanded Terms of Reference (ToR) for the GoM involve analyzing state-wise revenue collection trends to identify patterns across sectors and regions. The group will also review revenue details from inter-state outward supplies and conduct sector-wise analyses to pinpoint issues requiring policy intervention or enforcement measures. Additionally, the GoM will assess the impact of macroeconomic policy changes and geographical factors on GST revenues, particularly concerning challenges faced by agrarian and smaller states. The group is also tasked with evaluating the effects of amendments made to GST acts and rules.
A significant aspect of the GoM’s mandate is to review and recommend the harmonization of anti-evasion, audit, and scrutiny tools developed by various agencies, including the National Informatics Centre (NIC), GST Network (GSTN), Directorate General of Analytics and Risk Management (DGARM), and state governments. The goal is to create a unified enforcement and compliance platform. Furthermore, the GoM will propose measures or policy interventions to augment revenue, especially for states experiencing substantial revenue shortfalls.
The GST, implemented on July 1, 2017, has undergone several amendments to simplify compliance for businesses. The reconstitution of the GoM reflects the Council’s commitment to refining tax policies and ensuring effective enforcement mechanisms. The group’s findings and recommendations are anticipated to influence future GST policies, potentially leading to sector-specific tax reforms and more robust enforcement strategies. Stakeholders, including businesses and state governments, should monitor developments closely to adapt to forthcoming changes in the GST framework.
