Business Other News 05 Aug 2017 Inter-state trade de ...

Inter-state trade delayed by GST

DECCAN CHRONICLE. | L VENKAT RAM REDDY
Published Aug 5, 2017, 1:01 am IST
Updated Aug 5, 2017, 1:01 am IST
Supply of electronic, pharma goods hit.
Out of over 2 lakh traders who have registered for GST in the state, provisional numbers were issued to only about 60 per cent. 
 Out of over 2 lakh traders who have registered for GST in the state, provisional numbers were issued to only about 60 per cent. 

Hyderabad: Inter-state trade from TS has taken a hit under the GST regime following the delay in registration of traders. Besides, allotment of provisional and GSTIN numbers have also been delayed.

Supply of electronic goods, pharma, paper, iron and steel products to other states have been impacted. Traders in other states are refusing to purchase stocks from Telangana state in the absence of GST registration and provisional numbers.

 

Officials put the loss at Rs 3,500 crore to the state exchequer in July, the first month of GST, but hope to recover it in the coming months. Officials estimate a 30-per cent reduction in inter-state trade last month.

The commercial taxes department had clocked 11 per cent growth in tax collections in the first quarter of current fiscal from April to June, when there was no GST. Officials expect the rate to come down the the second quarter which runs from July and September, on account of GST.

Out of over 2 lakh traders who have registered for GST in the state, provisional numbers were issued to only about 60 per cent. 

 

Those who got provisional numbers are yet to receive their GST Identification Number. All trade transactions have to be done with GSTIN.

Officials blamed the GST Network, the IT backbone of GST enforcement, for the delay. They said the network had been facing frequent technical glitches due to heavy load.

Exempt welfare schemes: TRS
TRS MPs on Friday created a ruckus in the Lok Sabha demanding that the Centre exempt development and welfare schemes like Mission Bhagiratha, Mission Kakatiya, irrigation projects, 2BHK housing scheme for poor from GST.

 

TRS MPs led by party floor leader A.P. Jitender Reddy raised slogans in the House and said these schemes had been affected on account of GST. Mr Jitender Reddy said, “GST on development programmes and welfare schemes has resulted in additional financial burden of nearly `20,000 crore on the TS government.”

He said the Rs 43,000-crore Mission Bhagiratha would provide safe drinking water to every household through taps. Mission Kakatiya was meant to restore over 45,000 tanks and minor irrigation sources and irrigation projects to provide a permanent solution to drought.

 

“Due to increase in GST on work contracts, the contractors are refusing to take up these works and demanding that the government bear the additional burden,” he said.

Union finance minister Arun Jaitley said the Centre would take up this issue in the next meeting of the GST Council. Following this, the TRS MPs withdrew their agitation.

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Location: India, Telangana, Hyderabad




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