PANAJI: As the tax collections after the roll out of Goods-and-Services-Tax (GST) are not increasing enough, the central government is likely to pay Goa government Rs 85 crore as compensation on account of shortfall in tax collections.
Dipak M Bandekar, Commissioner of Commercial Taxes, said, "We expect to receive Rs 85 crore from the central government as compensation for tax collections for the two months of September and October. It is likely that we will get this amount by the end of November 2016. Earlier, the central government had paid Rs 68 crore to the state government for the same reason for the months of July and August."
The tax collections should grow by 14% per annum between 2015-16 and 2016-17 and between 2017-18 and 2016-17. But, if the state government's tax collections don't grow by 14%, then the central government is supposed to compensate to the extent of shortfall. It is on this account that Goa government is expecting to receive Rs 85 crore.
Bandekar further informed, "The state government's tax collections due to GST have remained more or less stable between July and September. We received Rs 105 crore, Rs 109 crore and Rs 105 crore for July, August and September respectively on account of state government's share in GST (SGST). In addition to it, on IGST (inter-state GST) front, the state government received Rs 35 crore, Rs 48 crore and Rs 53 crore for July, August and September respectively."
Traditionally, the months of July to September are considered slow in Goa, as economy picks up from October with the advent of tourism season. The season has started and now it remains to be seen whether Goa government's GST collections will grow at a high rate in the coming months or not.
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MONEY MATTERS
* Central government is likely to pay Rs 85 crore to Goa for September and October 2017
* Between 2016-17 and 2017-18, tax collections of state should grow by 14% per annum
* In an event of less than enough growth, central government makes good the shortfall
* Earlier, the central government had paid Rs 68 crore for months of July and August
* Tax collections have remained more or less stable between July and September
* Tourism season has begun. It remains to be seen if tax collections will grow at high rate
