Bengaluru: The revenue collected in the state fell well short of expectations in the first two months following the rollout of the Goods and Services Tax (GST). The State is looking to the Centre to make up for the shortfall.
The ‘Mid-year Review of State Finances’, tabled in the Legislative Assembly on Friday, shows that Rs. 5,710 crore was collected as revenue in July and August this year — the first two months of implementation of GST — as against Rs. 6,190 crore during the same period in 2016-17.
As per the Compensation Act, the actual revenue level for compensation (with a 14% growth per year over the revenue collected in 2015-16) is Rs. 6,640 crore, the review notes. This would mean the State has to get a compensation of Rs. 930 crore for just those two months.
The Fiscal Management Review Committee, headed by the Chief Secretary, which reviewed the fiscal and debt position of the State in November, has advised the Finance Department to closely study the shortfall impact in order to follow up with the Centre to get full compensation.
In July and August, over Rs. 4,000 crore was collected as State GST, there was a net settlement of Rs. 1,470 crore from the Integrated GST Account, and Value Added Tax and other subsumed taxes added up to Rs. 140 crore towards the period before the introduction of GST.
