PUDUCHERRY: Public Works Minister K Lakshminarayanan on Friday said Puducherry is expected to lose around Rs 190 crore to Rs 200 crore in revenue due to the implementation of the Goods and Services Tax (GST) 2.0 reforms. However, he expressed confidence that the increased business activity triggered by the GST reduction and Income Tax relief would offset the loss and ultimately lead to enhanced revenue.
Speaking after inaugurating a discussion on “GST Reforms for the Next Generation of Service Delivery” organised by the Commercial Tax Department in association with the Chamber of Commerce and Industry and GST professionals, the minister said the reform would significantly raise people’s purchasing power by reducing tax burden on essential commodities and services. “With more savings in people’s hands, consumption and trade will expand, which will ultimately boost revenue,” he said.
Lakshminarayanan highlighted that GST collection nationwide had risen from Rs 14 lakh crore to Rs 22 lakh crore over the past four years. “Despite this growth, the union government has ensured that people are not overburdened. As a Deepavali gift, Prime Minister Narendra Modi has introduced GST 2.0, which reduces taxes on goods used by the common people, while exempting the insurance sector from tax altogether,” he said.
Chief Secretary Sharat Chauhan described the reform as a historic step that aligns with the Prime Minister’s call to promote the purchase of India-made products. MLA T Sivasankaran, State Commissioner for Taxation and Secretary Yasin M Choudhary, and other senior officials were present.