PANAJI: The state legislative assembly on Tuesday unanimously passed the Goa Goods and Services Tax Bill, 2017 (GST) as Chief Minister Manohar Parrikar assured about Goa gaining net revenue from Rs 600 crore to Rs 1,000 crore, during the first year of the new uniform tax regime, due to its profile of being a consumer state. “This important Bill will make the ‘ease of business’ dream of the Prime Minister, Narendra Modi, come true,” he said.
“The government will hold awareness camp for the stakeholders of GST from May 15 to May 22, while organise a day-long GST workshop for the state legislators on May 23,” Parrikar, who also holds the finance portfolio informed the House, stating that petrol, which is presently not within the purview of GST, is nevertheless a component of the new legislation. “It is, however, presently kept at zero per cent,” he said, pointing out that many states have taken objection to the exclusion of petroleum products from the GST as these products form major revenue component of the states.
“There are around 23,000 dealers in Goa, out of which 18,000 have been registered with the department of commercial taxes,” the Chief Minister said, adding that those having their turnover below Rs 20 lakh would not need to further register under the GST regime, while those having their turnover between Rs 20 lakh and Rs 50 lakh would have no compulsion for registration, but will have to pay a minimal composition tax. He further informed that those with their turnover above Rs 50 lakh would need to be compulsorily registered.
It may be recalled that the Parliament on April 6, earlier this year had passed four related legislations to pave the way for nationwide roll-out of the GST from July 1, later this year.
The opposition Congress MLAs, supporting the Bill, stated that the roots of the iconic taxation legislation could be found in the erstwhile Congress-led United Progressive Alliance (UPA) regime, further cautioning the state government to spread awareness about the same.
Addressing the House, the Chief Minister stated that Goa will not face any losses due to the implementation of the GST regime. “There is a legal provision, which ensures full compensation for five years to the states for losses on account of the GST implementation,” he informed, adding that Goa, however, would not require this compensation, as it would enjoy gains under the GST regime.
Maintaining that taxes like entry tax, luxury tax, entertainment tax and service tax, besides countervailing duty and customs duty will be abolished after the implementation of the Goods and Services tax, the Chief Minister said that even Value Added Tax would then be applicable to only petroleum products and liquor.
“The state, under the ambit of the GST, will face a maximum annual loss to the tune of Rs 700 crore to Rs 800 crore by way of reduction of one per cent from the existing average tax of 10 per cent, in the state,” Parrikar informed, pointing out that the annual collection of the central government from Goa will be Rs 2,000 crore at 15 per cent, and would rise to Rs 2,400 crore at the tax rate of 18 per cent. “This will provide 50 per cent of the amount that is Rs 1,200 crore to Goa, which could still go up with other minor revenue coming in,” he noted, stating that considering both losses and profits under the new uniform taxation regime, Goa will be a gainer with net gain between Rs 400 crore to Rs 500 crore, going up to even Rs 1,000 crore.
It was also informed that Goa, known as a consumption state, consumes three to four times the national consumption average.
Speaking further, the Chief Minister said that after the arrival of the GST regime, the internet connectivity would not be critical for the local entrepreneurs. “In the absence of internet connectivity, especially in interior areas, these entrepreneurs can record their business-related data on a compact disc and take it to the centres, soon to be set up by the government, where this data could be loaded online,” he noted.
Stating that his government would get rid of all hiccups faced by the entrepreneurs as well as public, after the implementation of the GST legislation, Parrikar said that the officials of the sales tax department have been already adequately trained to handle this regime. He also quipped that the United Progressive Alliance could not get the GST Bill passed in the Parliament as it failed to create a consensus of various political parties on the same.
The Chief Minister also informed the House that the city of Panaji, by next month would receive Rs 550 crore for its development as a smart city, under the Smart City Mission. He further mentioned that his government has cleared everything including pending dues, during its 55 days of regime, and there is no pendency of any outstanding from the government side.