The state government is quite confident despite being a consumer state, Meghalaya would not lose much revenue following the roll-out of the Good and Service Tax (GST).
An official of the State Finance department that said that the state would remain in comfortable position as far as revenue generation was concerned due to the compensation scheme which is an integral part of the GST
Under the compensation scheme, the GST Council has calculated that 14 per cent growth rate will be the basis for compensation to those states whose tax realisation will be reduced.
“Even if we fall short, we will be compensated under the compensation scheme,” the official said
The official added that the GST will take some more time in the state to settle as many traders were yet to file their returns.
“It will take some more time for the State Government to finally make the necessary assessments whether there is any dip in revenue generation or not,” the official added.
The official also informed that more than 8000 traders in the state far has registered under the GST regime.
The introduction of GST is expected to be a step in the reforms of indirect taxation in India. The GST is a proposed system of indirect taxation merging most of the existing taxes into a single system of taxation.
Introduced as ‘The Constitution (One Hundred and First Amendment) Act 2016’, the new tax regime would be a comprehensive indirect tax on manufacture, sale and consumption of goods and services throughout India to replace taxes levied separately by the central and state governments.