New Delhi, Jan 24 (KNN) The GST Council has formed a panel of state finance ministers on revenue shortfalls to study GST collection on services by the states, said Sushil Modi, Bihar Deputy Chief Minister.

The study report will reveal the factors as to why big states are facing revenue shortfall while their smaller counterparts are doing well in terms of GST collections.

The seven-member Group of Ministers headed by Modi also decided to look into the issues concerning input tax credit (ITC) with a view to finding out if they were contributing to revenue shortfall.

Modi said “It has been decided that a committee of officers will study the collection of tax on services by the states. It is apprehended that states may not be collecting the due GST on services as unlike the Centre they do not have expertise in taxing services.”

He further said that the GoM has decided not to rope in any third party experts to study the reasons for revenue shortfall.

Out of 31 states, only Andhra Pradesh and five north eastern states that includes Mizoram, Andhra Pradesh, Manipur, Sikkim and Nagaland have recorded revenue increase post the GST roll out.

Among several states Punjab, Himachal Pradesh, Chattisgarh, Uttarakhand, Jammu and Kashmir, Odisha, Goa, Bihar, Gujarat and Delhi are facing revenue shortfall following the implementation of goods and services tax (GST). These states are facing revenue shortfall in the range of 14-37 percent in the April-November period.

Among the Union Territories, Puducherry is facing a maximum shortfall of 43 percent.

Among other things they will also study the trends of revenue collection before and after GST implementation.

The other members of the GoM include Punjab Finance Minister Manpreet Singh Badal, Kerala Finance Minister Thomas Isaac, Karnataka Rural Development Minister Krishna Byre Gowda, Odisha Finance Minister Shashi Bhushan Behera, Haryana Taxation Minister Capt Abhimanyu and Goa Panchayat Minister Mauvin Godinho.

The GoM, which was set up on 1 January, would meet again in February.