With the GST compensation grants having ended in June 2022, there has been an adverse impact on some states, it said, adding that increasing the level of GST revenue may require rationalisation in tax slabs. States continue to have a high level of committed expenditure, and persistent revenue deficit. State GST (SGST) accounts for over 40% of states’ own tax revenue but SGST to GSDP ratio continues to be lower than pre-pandemic level. SGST revenue is also lower than the level of guaranteed revenue for five years. Of these, Andhra Pradesh, Himachal Pradesh, Kerala, Punjab, and West Bengal did so after accounting for revenue deficit grants.

Source: Indian Express November 14, 2023 05:16 UTC