GST might have flaws, but we cannot just 'damn' it: FM Sitharaman

Finance Minister Nirmala Sitharaman (Image- PTI)

Finance Minister Nirmala Sitharaman October 11 said though the Goods and Services Tax (GST) may have flaws, it cannot be cast aside as it is the law of the country.

Sitharaman was replying to a question asked during an interaction with businessmen, entrepreneurs, Chartered Accountants and others in Pune.

“We can’t just damn GST. It has been passed in Parliament and the state assemblies. I am sorry, but it is the kanoon of the country. It might have its flaws, but I appeal to everyone to work together and come up with solutions to improve the system,” she said.

GST collections dropped sharply to a 19-month low of Rs 91,916 crore in September, mirroring a widening slowdown in the economy triggered by shrinking consumer demand. As a result, the government has constituted a committee of officers to suggest measures to augment collections, expand the tax base and check evasion

This was the second straight month of decline in GST collections, which from July 1, 2017, amalgamated 17 different central and state levies, including excise duty, service tax and VAT.

The fall in tax collections is seen as a reflection of economic activity and a decline in collections indicated a downturn.