22 October, 2020

One Year Of GST: 'Revenues Are Not Buoyant Because Of Terrible Leakages'

Kerala finance minister Thomas Issac on one year of GST implementation, the centre's power over states, and how Arun Jaitley strove for a consensus decision.

One Year Of GST: 'Revenues Are Not Buoyant Because Of Terrible Leakages'
outlookindia.com
2018-06-22T16:58:59+05:30

Looking back at one year of GST ­implementation­, Kerala finance minister Thomas Isaac ­expresses ­d­i­s­­­­appointment on ­several fronts, parti­cularly as it has not generated buoyant revenues as ­expected. In an interview, he tells Lola Nayar  that the GST structure is not in tandem with ­cooperative federalism.

How do you see the progress in GST implementation over the last one year?

Overall, it has been a bit of a disappointment. We had big expectations of buoyant revenues, falling prices and improvement in ease of doing business, but none of this has really materialised. Revenues are not buoyant because there are terrible leakages. As the whole system is not in place today, even if you decide on the returns form, one doesn’t fully know if the annual ret­urns will be enforced this year. There have been no gains to the consumer des­pite a very significant fall in the tax burden. Rarely have prices come down. And the anti-profiteering...

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