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    Published On : Tue, Aug 21st, 2018
    Business News | By Nagpur Today Nagpur News

    GST bonus: Maharashtra collects 28% more revenue in April-July 2018 over same period last year

    GST Bill

    Mumbai : Revenue from the Goods and Services Tax (GST) has emerged as a silver lining for cash-strapped Maharashtra. The state collected Rs 45,626 crore in the first four months of this financial year. This is a 28.3% jump from the indirect taxes collected between April and July 2017, according to data from the state GST commissioner. During April-July 2017, when GST had not yet come into force, the state’s revenue from indirect taxes was Rs 35,548 crore.

    The GST regime was introduced on July 1, 2017. Maharashtra is also among the leading states in GST payments. It has a 14.77% share in the country’s GST payments for the April-July period this year. The GST paid in India in this period was Rs 3.89 lakh crore. The GST paid in Maharashtra was Rs 57,545 crore.

    However, it is not clear whether the same pace of revenue collections will continue in the face of GST rate cuts. In July, the GST Council reduced the tax rates on more than 50 items in an attempt to rationalize the tax structure. “The full impact of the rate cut will reflect by the time the August returns are filed,” said senior officials.

    The introduction of GST led to the scrapping of indirect taxes, including VAT, octroi and local body tax. The state has to compensate municipalities with Rs 13,000 crore annually for octroi and LBT, which cuts into the gains to the state finances. Maharashtra’s GST collections have been among the highest in the country since it has both the manufacturing and services sector, said officials.

    “Maharashtra is a major consumption centre since it is a hub of both manufacturing and the services sector. It is also a major consumer of high value white goods,” said Rajiv Jalota, the state’s GST commissioner. Indeed, it’s not just individuals but also businesses which are consumers of services in the state, including banking and financial services as well as insurance, he pointed out. However, Maharashtra’s GST revenues have fallen short by Rs 2,372 crore compared to the compensation base set by the Centre during the same period. Under the GST regime, states have to be compensated by the Centre if they fail to meet the 14% growth target in the taxes which were scrapped in the GST regime.

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