Taxmen were told that both the GST and Rs 13.35 lakh crore target for direct taxes for 2019-20 will have to be achieved.
Collections under the GST, which was introduced in July 2017, has remained mostly below the target.
The delays to pass on the money are due to a slip in collections and the states have nothing to worry, said FM Nirmala Sitharaman.
The meeting of all-powerful GST Council is going to be held against the backdrop of lower-than-expected GST collection.
The meeting of all powerful GST Council is expected to take place in the second half of this month to deliberate on a host of issues.
According to official sources, the number reflects pick up in consumption and improvement in compliance as well.
The Centre has also reduced the credit limit of the state by almost Rs 6000 crore.
Last time services activity contracted for two consecutive months was in August 2017 following the GST implementation.
The gross GST revenue collected in the month of October, 2019 is Rs 95,380 crore of which CGST is Rs 17,582 crore.
A few companies, especially with exposure to the realty space, may face problems in the future, said HDFC's Aditya Puri.