The rate effect on GST collections: Lower rates, moderate revenues, higher compliance

Compliance issues under GST do not dominate public debate to the extent revenue collections do. Discussions in GST Council meetings indicate that both the Centre and states are concerned over lower GST collections. The causes and concerns deserve an analysis with certain caveats. The budget estimate of GST collections for FY19 is Rs 13.48 lakh crore, with a monthly target of Rs 1.12 lakh crore. Si…