PANJIM: With the State struggling with teething problems in implementing the Goods and Service Tax (GST), the Union Government has compensated the State with Rs 68 crore for any possible revenue loss for July and August.
GST was implemented from July 1 and till October the State GST collection was Rs 737 crore, which is almost 15-20 percent short of the Value Added Tax (VAT) collected during the corresponding period last year.
The government is expecting a revenue collection under the new tax regime to stabilise only in the coming financial year 2018-19.
Chief Minister Manohar Parrikar on Tuesday held a monthly review meeting with officials from the Finance Department on GST collection including VAT till date, which was Rs 234 crore in August, Rs 250 crore in September and Rs 253 crore in October.
Of the Rs 737 crores, the VAT collection stood at Rs 281crore, which is imposed on petroleum and liquor products.
The information was provided by the Department of Commercial Taxes. “Goa has received Rs 68 crore as compensation towards revenue loss for the month of July and August,” department sources said.
Finance Department sources said the Chief Minister is aware that it being a new tax regime, there will be teething problems, which will be overcome in days to come. “It is a new tax structure. We are still falling short in revenue collection compared to VAT. But that was expected. We are hopeful that the situation will stabilise in the coming financial year,” sources said.
Parrikar will chair a crucial meeting of all the officials concerned to resolve GST related in the State.
