Hyderabad: The flow of GST revenue began to the state treasury on Sunday. The Centre and state government share GST revenue in the ratio of 50:50 on bills issued by commercial establishments. The bills mention the share of tax between state GST and Central GST.
The state’s share is automatically credited into the accounts of the treasuries department through the RBI, after verification of bills by GSTN and RBI officials.
The finance department has completed the integration of IT platforms pertaining to GST Network (GSTN), Reserve Bank of India and state treasuries department.
An official of finance department said, “Earlier, we had to wait for months to get tax revenue. The dealers had to file online returns in the VAT regime. In the GST regime, the state’s share is immediately credited into the accounts of treasury department through RBI.”
He said, the state government has to wait for revenue share on tax collected under inter-state GST.
IGST is collected on inter-state supply of goods and services. Since GST is consumption based tax, the Centre will transfer the IGST collected to the state where the particular goods or services were consumed.
Telangana state Chief Minister K. Chandrasekhar Rao asked finance officials to stay alert on revenue sharing under the GST till the new system gets settled down as there may be technical glitches in the functioning of IT platforms of GSTN, RBI and treasuries department in the initial days.
He asked officials to monitor cash flow into the state treasury every day through GSTN and update him so that necessary steps can be taken in case any problems arose during sharing tax revenues.
