State’s tax revenue up by 2.3% in 4 months after GST

December 6, 2017   admin  GST News
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Odisha registered a growth of 2.3% in tax collection after the implementation of the Goods and Services Tax (GST) in July this year. State finance minister Shashi Bhusan Beherainformed the assembly while replying to a question on Monday.

He said the state has collected Rs 3735.14 crore as GST in the first four months (July to October), which is about 2.3% more than the corresponding pre-GST period of the last financial year. Odisha had then managed to get Rs 3651.28 crore in various taxes which were later subsumed in GST, he added.

In the four months after the rolling out of the ‘one nation one tax’, the state also got a compensation of Rs 1020 crore from the Centre towards anticipated revenue loss under the new tax regime. The Union finance ministry has already released Rs 333 crore for July-August and has sanctioned Rs 687 crore for September and October, the minister said during the question hour.

This takes the state’s effective GST revenue in July-October to Rs 4755.14 crore. The Union finance ministry pays the compensation every two months. In the new tax regime, any shortfall in revenue collection will be compensated by the Centre for the next five years.

The Centre calculates the states’ projected tax by considering 14% annual growth over the revenue collection in the previous year while awarding compensation under the GST (Compensation to States) Act, 2017. At such a rate, the state GST revenue in these four months should be Rs 4162.37 crore.

Source:https://timesofindia.indiatimes.com/city/bhubaneswar/states-tax-revenue-up-by-2-3-in-4-months-after-gst/articleshow/61927971.cms

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