PUDUCHERRY: Commercial tax (CT) collected in Puducherry during the first quarter of the 2023-24 fiscal has shown encouraging growth, with a remarkable 21% increase in revenue compared to the same period in the previous fiscal of 2022-23.
The cumulative revenue from April to July reached Rs 780.46 crore, a substantial rise from Rs 645.51 crore recorded in the corresponding time frame in 2022, Mohamad Mansoor, the Commissioner of Commercial Tax told TNIE.
The growth in revenue is primarily attributed to the combined State Goods and Services Tax (SGST) and Value Added Tax (VAT) collections. Notably, VAT revenue displayed a modest growth of 3%, from Rs 249.28 crore, in 2022, to Rs 255.67 crore. Meanwhile, the SGST revenue (excluding GST compensation) recorded a surge of 32%, from Rs 396.23 crore to Rs 524.79 crore.
Considering the withdrawal of GST compensation, the government has adjusted its expectations and has set a lower revenue target of Rs 2,180 crore for 2023-24 compared to the Rs 2,680 crore achieved in 2022-23. The average monthly revenue realisation has also climbed to Rs 196.68 crore from the previous fiscal's Rs 152.6 crore per month.
Presently, the Puducherry government oversees over 18,000 GST registrations. Commissioner Mansoor said that to address challenges of fraudulent claims for Input Tax Credit (ITC) and unauthorised refund requests, the CT department has collaborated with the Centre. In a bid to curb clamp down on fake applicants, the GST administration has initiated a pilot project involving biometric-based Aadhaar authentication for new applicants.
The CT department has expressed confidence in achieving the set revenue target of Rs 2,180 crore in the current fiscal. Considering the minimal 3% growth in VAT revenue, a slight increase in VAT rates for petrol and diesel has been suggested. This adjustment could potentially surpass revenue expectations while maintaining price competitiveness. Notably, there exists a significant price disparity between Puducherry and neighbouring states like Tamil Nadu, Kerala, and Andhra Pradesh, which could support a moderate VAT hike.
For instance, the price gap for petrol in Puducherry and Cuddalore is Rs 8.57, Villupuram is Rs 8.01, Mahe and Kannur (Kerala) exhibit a difference of Rs 14.09, while Yanam and Kakinada (Andhra Pradesh) show Rs 15.40. For diesel, the price gap is Rs 9.95 with Cuddalore, Rs 9.40 with Villupuram, Rs 13.11 with Kannur, and Rs 113.29 with Kakinada.