Odisha registers 2.3 pc growth in tax collection after GST

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Bhubaneswar: Odisha has registered a growth of 2.3 per cent in tax collection after implementation of the Goods and Service Tax (GST) in July this year.

Odisha Finance minister S B Behera informed this while replying to a question in the assembly today. Behera said the state has collected Rs 3735.14 crore as GST from July to October, 2017 which is about 2.3 per cent more than the corresponding period of the last fiscal.

In the pre-GST regime during 2016-17 fiscal, the state had collected Rs 3,651.28 crore from July to October 2016, the minister said adding that the increase in tax collection is 2.30 per cent.

Between July to October, 2017, the minister said the state has collected tax worth Rs 4,415.20 crore from petrol, diesel, turbine fuel, natural gas, crude oil and liquor, which are out of the GST ambit.

He said the Indian Oil Corporation Limited (IOCL) has paid Rs 2934 crore to the state as the central PSU did not make payment from December 2015 to July 2017. Though IOCL was collecting such VAT, it had not make payment to the state, the minister said.

As per the provisions of the GST law, the Centre would compensate loss of the states at 14 per cent rate. Behera further said the Centre has provided the Odisha government Rs 1,020 crore on account of loss of tax after GST implementation.

"The state has got Rs 333 crore as compensation in July-August whereas Rs 687 crore has already been sanctioned by the Centre for September-October," the minister informed.

Replying a question, the minister said that the state government has been demanding that the Centre for lessening of GST on handicrafts. For example, after the state raised the issue before the GST Council on Sambalpuri saree the tax has been reduced to 5 per cent, he said.

But, the 12 per cent tax still persists on Sambalpuri sarees priced above Rs 1,000, the minister said.

Chief Minister Naveen Patnaik has requested Prime Minister Narendra Modi to exempt handicraft products from GST, Behera said adding that he has also raised the issue in the GST council meeting.

"The GST council will take a decision on exempting GST on handicraft products," Behera said.

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