Opposition attacks government via GST

Mumbai: Using every available opportunity to lambast the BJP-led government in the state, the opposition on Sunday grabbed the special GST session to slam the government on various issues – farmer suicides, loan waiver and fiscal management. All opposition parties cleared their intention to support the proposed bills. On Monday, state finance minister Sudhir Mungantiwar will reply to debate.

After clearing compensation bill, the state assembly on Sunday took the state GST bill for passage. Nationalist Congress Party (NCP)’s Jayant Patil opened the debate demanding special committee on GST to discuss the implications and amendments for future.

“All senior officers of revenue, finance, planning and sales tax shall be there in committee. This committee should study the implications of GST for five next years. I am sure that there will be complications. Idea of GST is basically tax simplification. This committee shall suggest government on simplification of law,” said Mr Patil.

Talking about the preparation of the new software system, Mr Patil asked Mr Mungantiwar to reach out to the sales tax headquarters. “Now onwards everything will be online. We need to check whether all receipts on every sale or purchase is being calculated. If this doesn’t work then state will have to face huge loss and chaos so be careful,” alerted Mr Patil.

Opposition leader Radhakrishna Vikhe-Patil asked government to anticipate negativities. “We saw during demonetisation that the government was not fully prepared. Every decision needs powerful backing of the system. Before considering July 1 as deadline, please cross check whether that system is in place,” said Mr Vikhe-Patil.

BJP’s Ashish Shelar slammed the opposition parties over the taunts.

How GST will affect state
GST bill is basically about tax simplification. But Maharashtra is set to lose from it, as sales tax is being handed over to the union government. Maharashtra is the largest manufacturing state in India with more than Rs 55,000 crore  revenue coming from sales tax. After implication of GST, consuming states would get tax than manufacturing. Though the union government is going to compensate, the opposition wants to know the ratio of compensation.

Loss: State expects loss of sales tax entire. In 2015-16 it was around Rs 51,000 crore.  Compensation: State will get compensation of Rs 51,000 crore.

Loss: State will have to bear cost of compensation to municipalities over octroi, amounting to Rs 14500 crore.
Compensation: Sate will get Rs 7200 crore in compensation from centre as BMC amount.

Loss: State was expected to raise Rs 14000 crore from sales tax and excise. But as SC has ordered ban on sale of liquor near state and national highway, it is expected to lose Rs 7000 crore.
Compensation: There will be no compensation for it.

Loss: Since Maha abolished LBT it is bleeding for almost Rs 6000 Cr. State has to compensate municipalities this amount after GST implementation.   
Compensation: No compensation from Centre on it.