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The Centre is bracing for a potential revenue shortfall of nearly Rs 40,000 crore as it prepares to roll out a major overhaul of the GST framework, Finance Ministry sources have confirmed. The Fitment Committee, a panel of GST secretariat officers, has worked out preliminary estimates of the revenue deficit that both the Centre and states may face once the new structure is implemented. Shift to Two-Tier GST Structure The new system aims to simplify GST by moving to a two-rate framework of 5
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FAQ :
The Centre is bracing for a potential revenue shortfall of nearly Rs 40,000 crore due to the GST overhaul.
The new system aims to simplify GST by moving to a two-rate framework of 5% and 18%, eliminating the current 12% and 28% brackets. A 40% slab will be retained for sin goods.
The Centre is likely to forgo around Rs 20,000 crore annually from GST and TDS on online gaming platforms.
A key relief measure under discussion is the removal of GST on health and life insurance premiums for individual policyholders.
The 56th GST Council meeting is scheduled for September 3-4 in New Delhi.
Despite the immediate shortfall, the government expects increased consumer spending to offset the loss.
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