Hyderabad: Telangana state government is confident that there will no loss to the state exchequer on account of GST rollout from July 1. Principal secretary of commercial taxes Somesh Kumar said there were enough provisions in GST Act to compensate States in case of any revenue loss.
He said the commercial taxes department will close border check posts once GST becomes operations.
There will be no scope for tax evasion in GST regime and as such there is no need to run check posts to prevent tax leakages. The tax compliance will increase which will in turn result in more revenue for the government. The fears of revenue loss on account of GST are unfounded. Even if any revenue loss happens, there are provisions in GST Act to compensate States accordingly,” Mr Somesh said.
He said the crucial GST Council meeting will be held in Srinagar on May 18 and 19 to decide tax rates for various goods and services.
The GST Council has finalised four slabs besides additional slab with cess on luxury items. However, it is yet to classify which goods and services fall under which slab. Mr Somesh Kumar said the transition of dealers and traders from VAT to GST has been going on smoothly in the state and all of them will be covered by this month-end.
Trial runs will also be held in June for the smooth rollout of GST from July 1, he added.
