In its final report, submitted on March 16, the committee for sub-national accounts suggested that goods and services tax (GST) be used for estimating incomes and other statistics at the state level.New Delhi: A government-appointed committee has suggested a complete revamp of how states collect and compile data for state-level gross domestic product (GDP) and other estimates.
In its final report, submitted on March 16, the committee for sub-national accounts suggested that goods and services tax (GST) be used for estimating incomes and other statistics at the state level. It also said that states should compile their own index of industrial production (IIP) instead of relying on the all-India IIP data in order to come up with more accurate estimates. Constituted by the statistics and programme implementation ministry in June 2018, the committee, headed by Ravindra H Dholakia, was tasked with reviewing the methodology of estimation of sub-national accounts and giving its recommendations.
The committee emphasised the need for a dynamic and sector-specific business register. It said the databases of the Ministry of Corporate Affairs (MCA), GST and the Central Bureau of Direct Taxes can be used for more accuracy in estimations. However, GST data has yet to be made available for regular use in estimation, it said in the report.
“We were all hoping the GST data has a transformative effect on the way we estimate incomes, but unfortunately that support is still not coming from the GST network,” said a person aware of the development.
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Source: indiatimes.com