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GST will bring down prices, bolster revenue to state: TN Finance minister

There is likely to be a 14 per cent increase in revenue over the sum generated during 2015-16 fiscal due to GST.

Chennai: The state, as well as the people and traders, will stand to gain out of GST as it rationalises the rates. “The Centre, agreeing to late CM Jayalalithaa’s demand, has ensured compensation for revenue loss to states on account of GST rollout, constitutionally statutory,” finance minister D. Jayakumar said on Saturday.

“Amma (late Jayalalithaa) government agreed to the GST without compromising on the state’s autonomy and fiscal position. It is only because after she had asked, the Centre agreed to compensate the states once in two months for a period of five years,” Mr Jayakumar added.

Commercial taxes department, additional chief secretary C. Chandramouli, said the states’ revenue is expected to increase rather than decrease due to the implementation of GST.

There is likely to be a 14 per cent increase in revenue over the sum generated during 2015-16 fiscal due to GST. Of the 6.50 lakh traders in the state, 93 per cent of them had migrated to the new system.

( Source : Deccan Chronicle. )
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