Odisha gets GST relief

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Odisha has collected Rs 8,458.65 crore revenue between July 2017 and March this year under the Goods and Services Tax (GST) and other taxes merged in the GST. Odisha is to get Rs 2,309 crore compensation for the loss incurred during the above period because of introduction of the GST.

Finance minister Sashi Bhusan Behera on Monday informed the Odisha Assembly that an amount of Rs 6,625.91 crore had been collected so far under the GST and another Rs 1,832.74 crore towards the taxes merged in the GST since July last year.

According to the provisions of Constitution (101st Amendment Act), the states are to be compensated for any loss on account of introduction of the GST for five years. For the calculation of compensation, collection of the taxes merged in the GST in 2015-16 has been taken as the base year collection and 14 per cent has been taken as the annual growth rate. Behera said Rs 2,309.67 crore had been due to Odisha as the GST compensation between July 2017 and March 2018. “The Centre has released Rs 2,019 crore up to February this year, and it is to release another Rs 290.67 crore towards loss for the month of March,” he said

MLAs, including BJD MLA Atanu Sabyasachi Nayak, on Monday demanded that the state government should put forth its demand at the GST council for waiver of the GST on handloom and handicraft items as a large chunk of poor artisans were earning their livelihood from this sector. On this, Behera said the government was not collecting tax from the handicraft and handloom products prior to introduction of the GST. “We have raised this demand before the GST council several times as more than 3.5 lakh handicraft artisans and handloom weavers of the state are depending on this sector for their livelihoods,” he said.

Behera, who is a member of the GST council, said the state government had also demanded for waiver of the GST from silver filigree items.

However, he refused to raise the demand for bringing the petroleum products under the GST fold. “Unless the GST council takes up the issue, we can’t raise it suo motto.”

“The GST council has given the right to the states for collecting VAT on six items, including the petroleum products, and kept it out of purview of the GST. We are collecting 26 per cent VAT from petroleum products, which is less than the tax levied by several economically advanced states. Even Maharashtra is collecting Rs 9 cess over and above the VAT,” he said.

Read More at: https://www.telegraphindia.com/states/odisha/odisha-gets-gst-relief-227215