BHUBANESWAR: Even as the stage is set for the introduction of Goods and Services Tax (GST) across the country from July 1, the Odisha government, which has welcomed the new tax regime, is yet to calculate its impact on resources generation of the State.
Though the Odisha government has described GST as a major financial reform, there is yet to be a consensus on how far it will boost the state's finances.
"The GST will bring about comprehensive reform of the indirect tax regime in the country and a major financial reform to make India a single market," chief minister Naveen Patnaik had said while addressing the legislators in the workshop on GST held ahead of the Odisha Assembly's special session on May 18 to pass the Odisha Goods Services and Tax Bill.
Since GST is going to be implemented from 2017-18, the Odisha government had demanded payment of CST compensation upto 2016-17 financial year. Several demands of the state government when the GST was in the discussion stage has also been ignored.
Meanwhile, the Odisha government has reiterated that handloom and handicrafts products should be exempted from the purview of GST. At present, handloom products like Sambalpuri, Bonkei, Maniabandha and Tussar sarees manufactured by weavers are exempted from tax. Similarly, handicraft goods like applique, stone and wood works, terracotta products, patta paintings and tribal crafts are exempted from tax.
Since these items will have five per cent GST, it is likely to have an impact on the market of these products affecting the livelihood of weavers and artisans. More than 3.5 lakh people in Odisha depend on handloom and handicraft sectors for their livelihood.
The demand was raised by Finance Minister Sashibhusan Behera at the meeting of the GST Council held at New Delhi recently.
The state government today maintained that all sections of the population will benefit from the introduction of GST. The state government also said that businessmen with an annual turn over of `20 lakh will not have to register under GST.
The Odisha government has notified the GST Rules today. Finance minister Sashibhusan Behera and principal secretary TK Pandey will attend the function to be held at New Delhi tomorrow to roll out GST.