Odisha may continue to sustain loss on account of Goods and Services Tax (GST) even after five years although there was constitutional provision of compensating loss for five years only, says Odisha Economic Survey which was tabled in the State Assembly on Monday.
The introduction of GST in July 2017 had subsumed 17 taxes levied by the Centre and the State under the GST.
“With initial troubleshoot issues related with the implementation of the new tax regime, Odisha has been facing revenue loss,” says the latest Survey.
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“As per the constitutional provisions, the State will get compensation towards loss of revenue for five years. However, the State may continue to sustain loss on account of GST even after five years because of the structural changes like the rate structure, abolition of central sale tax and entry tax,” it observes.
As per the Economic Survey, applying 14% growth rate to the base year’s collection, revenue for 2018-19 works out at ₹1,6370.08 crore whereas revenue collection under GST is ₹1,2140.45 crore. It implies compensation claim of the State stands at ₹4,229.64 crore, out of which received so far is ₹3,785 crore. Balance ₹444.64 crore is yet to be received.