Chennai: Tamil Nadu’s revenues under the Goods and Services Tax (GST) regime, have been “stronger than anticipated” and the State obtained revenue of Rs 14,305 crore through GST which was implemented from July 1, 2017, Minister for Fisheries, Personnel and Administrative Reforms D. Jayakumar, has said.
Addressing the 26th meeting of the GST Council in New Delhi, headed by the Union Finance Minister Arun Jaitley, on Saturday, he said the Centre has set inter State revenue share at '6,346.94 crore for Tamil Nadu and has paid an advance of Rs 1,304 crore. He urged the Centre to pay the balance by this month-end.
According to a press release here, the Centre has also paid Rs 632 crore as GST compensation as of Feb. 2018.
“Due to initial concerns that the implementation of destination-based GST system would affect revenues of manufacturing States like Tamil Nadu, the State had demanded the Centre to compensate TN for GST loss for five years with an escalation of 14 per cent. But tax collections continue to be strong under GST,” Mr. Jayakumar said.
84 requests for tax exemptions made
Though TN had launched the e-way bill on February 1, 2018, due to technical glitches on the GSTN portal it was put on hold. At today’s meeting it was decided to implement e-way bill from April 1, 2018 for interstate trade. It will be rolled out in State wise for intrastate trade.
Meanwhile, over 84 requests for tax exemptions and reductions under GST have been represented to the Council since the shift to the new tax regime. Of these 38 requests from Tamil Nadu have been acted upon and reductions and GST cuts implemented. In addition, the Minister urged the Council to expedite action on similar requests relating to branded and non branded food products, unbranded bakery products, chit funds and a wide range of products and services.
The Council decided to put off implementation of reverse charge mechanism by a further six months to Sept. 30, 2018. The meet also discussed ways for a technology based system for grievance redressal mechanism to address issues relating to GST compliance.
