“Rate rationalisation, removal of inverted duty structure to reduce friction among trade… at the same time we can have a lesser number of slabs,” Pandey told the publication.

Moneycontrol could not independently verify the report.

The finance secretary said the GST Council will have to implement the “most practical option”.

During the lockdown, several states complained of delays n compensation payouts.

“The GST compensation law provided that in case if there is a revenue shortfall then the GST Council will decide as to what needs to be done… That is exactly what is being discussed,” Pandey told The Economic Times.

In 11 months of FY20, the Centre released over Rs 1.5 lakh crore to states as GST compensation cess payout, the report said.

The GST Council had last met on June 12 and is expected to meet again in July. The council will discuss compensation cess to states and rationalisation of rates at the next meeting.

Domestic GST collections in 2019-20 grew 9 percent, faster than the 7 percent nominal pace of economic growth, Pandey said.GST revenue collection in June 2020 was Rs 90,917 crore, as against Rs 32,294 crore collected in April 2020 and Rs 62,009 crore in May 2020.

Source : Financial Express