GST bill passed unanimously, to kick in from July

0
22
Print Friendly

The Goa Goods and Service Tax (GST) Bill 2017 will come into force from July onwards. The bill was unanimously passed in the Goa legislative assembly on Tuesday amid projections of an increase in revenue between Rs 600 to Rs 1,000 crore.

Chief minister Manohar Parrikar said that with the implementation of GST, around Rs 140 crore revenue loss is expected in the collection of value added tax (VAT). The state government currently collects around Rs 1,400 crore in VAT.

He added that the government would also lose around Rs 40 crore in luxury tax. At present, luxury tax earns the state government Rs 152 crore revenue.

Parrikar said that there would be a loss of around Rs 137 crore from central sales tax (CST) and around Rs 300 crore loss from the collection of entry tax.

“With this current structure of GST, there would be maximum revenue loss of around Rs 700 to Rs 800 for the state,” Parrikar said, but clarified that the state would gain from all the other services which will now come under the ambit of GST.

Parrikar said that last year around Rs 1,308 crore was collected as revenue for the central government from service tax and excise duty. Under GST, 50% of these taxes will now remain with Goa.

He also said that at present central revenue collection in Goa is projected at approximately Rs 2,000 crore and if it is collected at the GST rate of 18 per cent then the collection will go up to Rs 2,400 crore and half of this amount, Rs 1,200 crore, will remain with the state treasury.

“That means our loses are a maximum of Rs 800 crore and our gain is a minimum of Rs 1,200 crore. There will be a minimum gain of Rs 300 to Rs 400 crore with GST,” he said.

Taking all facts into consideration, Parrikar predicts that Goa will gain between Rs 600 to Rs 1,000 crore in net revenue collection in the first year.

Chief minister Manohar Parriakr said that from May 15 to May 22, an awareness camp will be organized for traders. He said that on May 23, the government will organize a workshop on GST for MLAs.

Traders who have less than Rs 20 lakh turnover need not register under GST. He added that the registration is optional for traders whose turnover is between Rs 20 lakh to Rs 50 lakh but those whose turnover is over Rs 50 lakh have to compulsorily register.

For traders who have no internet connectivity, the government has decided to appoint people so that they can file their returns under GST. There are around 23,000 traders registered with the commercial tax department, of which 18,000 have been registered under GST.

NO COMMENTS

LEAVE A REPLY