Bihar Deputy Chief Minister Sushil Kumar Modi on Sunday demanded adequate compensation for the revenue losses it would suffer after the implementation of the Goods and Services Tax (GST) from April next year.
“Our past experience with the Centre has been very bad in seeking compensation for revenue losses by implementing taxes introduced by the union government such as the Central Sales Tax (CST),” Mr. Modi told PTI.
Asked how much the state would lose if the GST was implemented, Mr. Modi, said “though we have not calculated the losses, it will definitely have negative impact on several counts such as state’s share in entry tax.”
“The state will lose around Rs 600 crore on entry tax as the tax will be merged with GST,” he said.
The state would lose another Rs 260 crore as service tax from the Centre.