Sunday, 17th December, 2017

Snippets

Arun Jaitley introduces 'GST shortfall’ cess to close the tax deficit happening due to GST

29, Nov 2017 By dasu

New Delhi: As per the latest data shared by finance ministry, revenue collected from Goods and Services Tax (yes, this the right full form for GST!) for month of October is 10k crore less than what Government collected for the month of September.

arun-jaitley

When some quarters are raising this as a ‘cause for concern’, finance ministry has clarified, there is nothing to worry about revenue shortfall. Finance minister Arun Jaitley is going to introduce a new cess called ‘GST shortfall’ cess soon which will make us revenue surplus.

“We had a meeting today morning with our honorable finance minister to review the latest revenue collection figures. In the middle of the meeting Jaitley Ji wanted a break for few minutes. Immediately he took the calculator lying in front of him to do some calculation. After the meeting resumed, he said, he is going to propose a new cess of 5 percent soon which would be good enough to make us revenue surplus’, said Vikas Lahiri, a finance ministry official while addressing the press.

Mr. Lahiri added, “For the time being, we have termed it as ‘GST shortfall’ cess till we find a better name and sent the files to PMO for final approval. We are hoping as soon as PM Modi returns from Gujrat election campaign, he will approve this new cess. In all probability, this new cess would come into effect from Jan 1st, 2018”.

When one of the reporter at the press conference asked few tough questions like “Mr. Lahiri, do not you think adding new cess defeats the purpose of GST as it was supposed to reduce the tax burden on common people of this country”. Mr. Lahiri asked his assistant to note down the Aadhaar and PAN number of the reporter. They are planning to ask IT department to check reporter’s last twenty years rent receipt submitted as HRA proof and medical reimbursement bills.