Haryana Finance Minister Capt Abhimanyu Thursday said though there was no likelihood of a slide in the state’s revenue after implementation of the Goods and Services Tax (GST) Bill since there would be a tax rate which would be lower than current tax rate, but revenue loss cannot be assessed as of now.
“What will be the drop cannot be assessed at this stage. States have not given anything to the Centre in this regard because the states do not have the wherewithal to assess the drop and more so, we do not have the tax rate structure,” he said.
Hailing the passage of the Bill by Parliament, the minister expressed though there were transitional issues that the states have to suffer, but Haryana was ready for its implementation.
He added, “There is likelihood or possibility of a drop in the revenue of states which will be compensated by the Centre for next five years and a provision has already been made for this.”
Speaking about challenges before the state in implementation of the GST, the minister pointed to transition from VAT regime to GST regime and to prepare the officials in this regard. Other challenges are with respect to software and technical training of officials.
Abhimanyu said that broad assumption is that every household will be benefited in overall consumption of the goods and services because of lower tax. He agreed that services may become dearer if the GST is more than the present service tax of 15.5 per cent. However, rate is yet to be decided by GST Council, he added.
He informed that on Thursday, a Excise and Taxation department officials met to review preparations to be made at the department and state level for implementation of GST.
The Finance Minister claimed that Haryana government’s revenue growth was going in right direction and the state has already made a provision of Rs 4,000 crore in the budget for implementation of the 7th Pay Commission.