Welcoming the new tax regime, Chief Minister Devendra Fadnavis on Friday said that the state will benefit greatly from the GST. He also reassured local bodies, which will lose revenue because of the abolition of octroi, that they would be compensated. Maharashtra, while adopting the GST in the state legislature, had passed an Act making provisions for compensation to the local bodies across the state, including Rs 7,200 crore to the Brihanmumbai Municipal Corporation (BMC).
The Centre has assured the state government that it would provide adequate compensation for the revenue loss, for five years following the enforcement of the GST.He said the uniform tax regime would provide a fresh impetus and boost development. The chief minister believes GST will bring greater ease of doing business.