Uttar Pradesh eliminates GST deficit as businesses shift from Delhi

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While the states’ overall GST ‘revenue shortfall’ against the assured level has come down from 20% last year (July-March) to about 10% in April-December period this fiscal, a curious picture has emerged of neighbouring Delhi and Uttar Pradesh. Delhi needed Rs 2,971 crore as GST compensation from the Centre during April-December this fiscal, more than nine times the amount it received in 2017-18 (July-March); UP, on the other hand, has totally eliminated its GST shortfall this fiscal while the deficit was as high as Rs 2,432 crore last year.

The stark contrast between the two states is believed to have resulted from businesses in large numbers shifting back their offices and warehouses from Delhi to UP as the GST ended the arbitrage opportunity that existed in the pre-GST period when the tax (VAT) rates were much lower in Delhi.

Read more at: https://www.financialexpress.com/economy/end-of-arbitrage-uttar-pradesh-eliminates-gst-deficit-as-businesses-shift-from-delhi/1495043/

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