August 30, 2016 11:43:59 pm
In a special session that will be convened on Wednesday, the Goa state legislature will ratify the Constitution (122nd Amendment) Bill, 2014 on Goods and Service Tax (GST).
The ‘consumer’ state is presumed to make gains from the implementation of GST, as there are no major manufacturing units in the state and its substantial portion of income is attributed to tourism and mining industry in the state.
“Under the new scheme of things, the companies providing tourism allied services or online retailers in the state would require to register within the state — it would streamline the taxation process. Also since the end-consumer is based out of Goa, it would reflect an increase in the rate of tax collection,” Commissioner for Commericial Tax, Dipak Bandekar earlier told The Indian Express.
State officials also expect that with the onset of GST in April 1, 2017 — the cost of tourism and the hospitality sector in the state will substantially lower-down and it would boost travel, tourism and hospitality sector, which come under multiple taxation from both centre and the state.
On the other hand, the state authorities said that implementation of GST would also require them to give up on state levy such as entry tax (into Goa) and entertainment-tax. “The state government will balance such impact on the revenue by either retaining existing VAT structure on alcohol and petroleum products or bring it on parity with the GST- whichever is higher,” another state official said.
Recently, Chief Minister Laxmikant Parsekar welcomed the passage of the GST Bill in Rajya Sabha. Leader of Opposition in Goa Assembly Pratapsingh Rane also said that Congress party would support the ratification of the bill.
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