Chief minister Pramod Sawant on Tuesday said that there was a 26 percent deficit in the Goods and Service Tax (GST) collection in Goa. He added that the state government had asked the central government to extend its compensation scheme for GST for three more years. Reacting to the recent decision of the Union government to slash GST on hotel room tariff, the CM said that the move would not cause much revenue loss for the state and that it would boost the economy.
He also said that if there was a revenue shortfall, then the central government would compensate the state for the next two years. “At present, we will be compensated for the next two years and to fill the revenue gap, the central government will take alternate measures. The state government cannot bear such (26%) revenue losses. We have requested the finance commission to extend the compensation scheme for another three years till the revenue is stabilized,” the CM said.