PANJIM: Goa became the 15th state to ratify the Goods and Service Tax (GST) Bill as the State Assembly on Thursday unanimously passed the historical bill. The State is expected to get revenue of Rs 1,000 crore annually in form of service tax through GST.
The Special session of the State Assembly saw all its 40 members unanimously supporting the resolution ratifying the GST with the Opposition members cautioning the State government over the implication of new tax regime on the State. The Opposition has urged government to come up with a white paper in future ascertaining the profit and loss to State after GST enforcement.
During the passage of resolution, Chief Minister Laxmikant Parsekar ruled out that there would be any negative impact of the new tax regime, but instead would help the sectors like Service and Tourism, bringing in more revenue to the State. “Centre has already assured to compensate for five years, if there is any loss in revenue during the implementation of GST,” he informed the House.
Parsekar who is also the Finance Minister, termed the GST Bill as “historical”, “revolutionary” and “far thinking”.
“Many thought that NDA with no majority in the Rajya Sabha would not be able to pass the Bill in the Upper House. But Prime Minister Narendra Modi managed to overcome this barrier,” he said.
The chief minister also thanked all the Opposition parties for helping to pass the GST bill in Parliament and also in the (different) State assemblies. “At least 50 per cent of the States need to ratify this bill in their Houses. Out of 29 states, Goa became the 15th State to do it, making it a historical occasion,” Parsekar said.
He claimed that the GST implementation will help the economic growth of the State. GST council, headed by Union finance Minister, of which Parsekar is also a member, will decide the revenue-neutral-rate (RNR), which State is in favour of 18 percent.
Chief Minister said that Goa despite being a service-driven State was not benefitting from the service tax. “There are many manufacturing industries in the State. But their corporate offices are in other States. Due to which those states were benefitting due to service tax. The GST has provisioned that at least 50 per cent of the service tax from the industries here should come to Goa,” the chief minister said.
Parsekar calculated that at least Rs 1,000 crore would be annually added to the State exchequer in the form of Service Tax. “Thus helping in further promotion of service tax,” he said.
Parsekar told the State Assembly that the taxation on petroleum products, alcohol and brewery, royalty on minerals, vehicle tax and stamp duty will remain the mandate of State government as it is kept out of GST.
The Opposition members including Congress’ Vishwajit Rane, Independent Rohan Khaunte and Goa Vikas Party’s Francisco Pacheco, while supporting the bill, cautioned the government over the possible impact and demanded a white paper. MLA Vijai Sardesai raised apprehensions that with GST, the State would be known as most the expensive destination and it will have to face major competition.
