During a presentation by Revenue Secretary Rajiv Takru to the new Finance Minister, who took charge yesterday, the officials appraised him of the problems and challenges being faced on the revenue front. Jaitley, according to sources, expressed keenness to meet state finance ministers on the GST, the new indirect taxes regime which will subsume various levies like excise, service and various local taxes. The UPA government in 2011 introduced a Constitution Amendment Bill in the Lok Sabha to pave the way for the GST regime which aims at subsuming most of the indirect taxes at the central as well as the state levels. Read what is GST here
The ruling party BJP in its manifesto has committed to "bring on board all state governments in adopting GST, addressing all their concerns". Besides GST, Jaitley also inquired from the revenue officials the reasons for failure in achieving the tax collection target. The officials, according to sources, attributed the shortfall in revenue collection to moderation in industrial activity and slowdown in imports. The Index of Industrial Production (IIP) remained almost flat during the 2013-14, recording a marginal decline of 0.1 per cent.