GST effect: Rs 800 crore dip in state revenue

As feared by the Telangana government, the freshly introduced Goods and Services Tax (GST) has administered a giant shock to the state. in an exceedingly development that the state continues to be attempting to work out, the primary month of GST implementation showed a dip of `800 large integer within the revenue.In July, the primary month of GST, Telangana received Rs 850 large integer beneath state GST, Rs 690 large integer from fossil oil product that aren't beneath GST, Rs 500 large integer from the sale of liquor, and `150 large integer from alternative taxes.

Through central GST, the state contributed around Rs 518 large integer and another Rs1,000 large integer was calculable to be collected as Integrated GST (IGST), and each these amounts were attributable to the govt of Bharat account. A senior official same, "The tax collected on product returning in from alternative states and consumed here can come back beneath IGST. although Telangana contains a share therein, there's no clarity over the number to be shared by every state."

Inflicting additional pain on the state, the Centre has delayed devolution of central funds to states to 15th of each month as against the primary. The delay is making mayhem as states square measure left with no cash once paying salaries, pensions in 1st week.

Adding to the woes, the Centre has once more extended the date of the filing of GST returns. The maturity for the filing of returns for GSTR-1 has been revised to Oct 10 from Sep 10. whereas GSTR-2 contains a revised maturity of Oct 31 from Sep 25, GSTR-3 has been revised to November 10  from Sep 30. The dates for filing returns of GSTR-4 for the tax amount of Gregorian calendar month to Sep 2017 remains unchanged at Oct 18.

"We square measure currently uninformed on once we would get our rightful share within the GST from the Centre because it has got to change the accounts once the returns square measure filed," same an officer within the revenue department.

In June, a month before the launch of GST, Telangana collected `3,200 large integer revenue through industrial taxes, excise, transport and alternative taxes. once GST came into force in Gregorian calendar month, the state received solely Rs 2,400 crore, that is Rs 800 large integer but what it had attained within the previous month. Another disadvantage for Telangana is that it might not get compensation for loss of revenue because the state already according quite 14 per cent annual growth within the government income. 

within the GST regime, states with but 14 per cent growth square measure eligible for creating a claim for compensation. The figures associated with August has not however been compiled however state officers apprehend that powerful days square measure ahead for the state with relation to the implementation of GST.

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