Goa demands GST compensation for 5 more years: CM

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Chief minister Pramod Sawant said that the Goa government will ask the Centre to continue compensating states for loss of revenue incurred due to the implementation of the Goods and Services Tax (GST) for an additional five years beyond 2022. Speaking to reporters after delivering his first budget speech, Sawant said that currently, the state suffers a shortfall of 16% in GST collections compared to earlier tax collections. “We are going to ask for a five-year extension from the Centre,” said Sawant. Since the implementation of Goods and Services Tax GST, Goa has seen its indirect tax base widen but the state has been unable to catch up with earlier tax collections. Goa now wants the Centre to continue to financially compensate for the deficit.

The GST cess (compensation to state) Act 2017 is a compensation cess that is levied on specific items and services for compensation to the states for the loss of revenue due to the implementation of GST. “It takes time for GST to stabilize and if we go for an extension for an additional five years then the GST collections will Officials with the department of commercial tax and state GST said that indirect taxpayers had increased by 16,000 since July 2017 but the state has seen a consistent shortfall in the indirect tax revenue. In 2017-18, the projected revenue for the state government of the subsumed taxes on an average was supposed to be Rs 236 crore per month. Against this, the state earned just Rs 200 crore. “Revenue mobilization remains the key to attaining the budgeted targets, as the GST stabilizes and mining resumes, it should boost the state’s revenue capacity and supports the resumption of fiscal consolidation,” said Sawant

Read More at: https://timesofindia.indiatimes.com/city/goa/goa-demands-gst-compensation-for-5-more-years-cm/articleshow/70281821.cms