Utkal Reporter Bureau
Bhubaneswar|26 September 2017
The first two months of Odisha in the Goods and Service Tax (GST) regime has a negative report. GST collection in July and August this year has dropped by Rs 525 crore.
Odisha Finance Minister Sashi Bhushan Behera said odisha had collected Rs 1868 crore under GST in the month of July and August. On the basis of previous year’s performance in Commercial Tax collection government was expecting Rs 2393 crore during this period, said the Finance Minister. Hence the loss incurred counts Rs 525 crore.
As a drive to bring about a reform in the commercial taxation system the central government has introduced GST that is in effect from July 1, 2017.
As per rule the center will compensate the loss incurred by the state on account of GST. Odisha government will seek the compensation from the state, informed the Minister.
On other points of latest developments in the GST system Mr. Behera said that the GST council had reduced GST on Handicrafts and Handloom products to 12 percent from 18 percent.
Odisha Chief Minister Naveen Pattnaik advocates for total exemption of tax from Handicraft and Hand loom products. He had written a letter to PM Narendra Modi in this regard said the finance Minister.
He said “Considering the demands of Odisha, the GST Council reduced the tax rate on other handicraft goods from 18 per cent to 12 per cent,”
The GST council has revised the taxation slab in the case of other products too.
As the Minister noted, clay idols are now placed in zero tax category. Earlier they were at the top with 28% tax. While Sabai grass weaving rope and Sal leaf plates and cups have come down to 5% slab from 18% stone scluptures have been brought down to 12% slab from 28%.