PAC’s 19th Report: GST Flaws and the Case for GST 2.0
Why in the news
The Public Accounts Committee’s 19th report criticised GST implementation.
Key findings
- The States’ Compensation Fund stayed unaudited and unfinalised for over six years, and was not given to the CAG.
- GST reduced fiscal autonomy of manufacturing-heavy States.
- The Finance Ministry’s audit approach was called lackadaisical.
Compensation
- The GST (Compensation to States) Act, 2017 promised 14% annual growth for five years, on an FY16 base.
- Many States saw delayed or missing payments.
Recommendations
- A formal CAG mechanism for timely audits, plus better transparency.
Exam angle
- Committee: PAC, 19th report.