Due to GST, 11 states may lose Rs 9,500 crore - AskBihar24X7 - Bihar & Jharkhand News

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Wednesday, August 23, 2017

Due to GST, 11 states may lose Rs 9,500 crore

During the financial year 2018, the total revenue of all the states is growing at 16.6% CAGR, but the central government will need to pay a compensation of 9,500 crores to 11 states of the country. This is said in a recent report.  A note in the India Ratings said, "Under the new tax system GST, all the states will jointly grow from the CAGR of 16.6 per cent in FY13 to FY16, but this picture will be different for different states. In such cases, 11 states will be required to provide financial assistance of Rs 9,500 crore by the central government. "

                                                       


In the financial year 2018, for any revenue loss under baseline scenario, states like Andhra Pradesh, Chhattisgarh, Gujarat, Himachal, MP, Odisha, Punjab and Tamil Nadu will get compensation of Rs 5,600 crore from the Center. While states like Goa, Jammu and Kashmir and Jharkhand will get compensation of Rs 3,900 crores.  This is important because due to the GST implementation, the revenue of the state's own revenue could reach 15.5 per cent in the financial year 2018, while the basic scenario is 16.6 per cent, as input tax credits are available on both the goods and services.  It further said that in this regard, the total compensation in the financial year 2018 will go up to 9,500 crores (basic scenario Rs 5,600 crores). It is based on those concepts that 10% of the services in the final product of the goods and services are of the services.

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