Thanks to GST, Telangana records revenue losses in October
By V V Balakrishna | Express News Service | Published: 07th December 2017 01:58 AM |
HYDERABAD: Telangana state’s GST collections remain not much effected even as the overall collections at the national level dipped in October. Collections in October slipped to Rs 83,346 crore from over Rs 92,000 crore in September. The collections in Telangana too slipped by 160 crore and the same amount was compensated by the Central government. “We have received the compensation amount three days ago,” top officials in the Finance department told Express on Wednesday.
However, the officials sources said that the revenue collections for the month of October this year were better than the collections in October, 2016. “The loss of revenue is when compared with this year’s September figures,” sources said.Even though there was a general perception that the slip in revenue collections was due to decrease of GST rate on certain goods, officials were clueless about the exact reason. “Normally, when the tax rate is cut, the sales have to increase and the revenue too should jump. But, it will take some more time to get more revenue,” an official pointed out.
The finance officials stated that they did not know the exact reasons for the dip in tax collections. “The current month GSTN data is available only with the Central government. State have no access to it. It is difficult to analyse the reasons,” the official said.Sources added that the frequent changes in GST rates in every GST Council meet too created confusion and resulted in dip in revenues. “The Centre should not make frequent changes in GST in a hurried manner. The Centre should give time for stabilisation of the system,” an official said.
Meanwhile, the Union Finance Ministry is holding two crucial meetings in Delhi to analyse the dip in GST revenue. The officers’ level meeting will be held on November 9 and the Empowered Committee meeting of Minister will be held on November 14.Official sources stated that they had information about including the subject of GST on petrol and diesel in next GST Council meeting. The officials pointed out that the Centre should not take any hasty decision now, as it would badly hit the revenues of the state government.
Chief Minister K Chandrasekhar Rao has to take a decision on the state government’s stand on inclusion of petrol and diesel in GST, the official sources said.