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This shortfall pertains to various kinds of taxes collected (including Goods and Services Tax), except on items like petroleum and liquor, which are outside the ambit of GST.
Bandekar further explained, "The tax collections should grow by 14% per year. In case, tax collected does not grow by 14%, then the central government compensates the state government to that extent."
Goa government faced few hiccups starting from July 1, when GST was rolled out. This was because a number of indirect taxes
were absorbed by GST and it was tough to assess as to what would be the final impact on tax collections of the state government.
Moreover, trade was also affected because businessmen were struggling to adjust with GST. Certain taxes like entry tax were totally abolished as well. The net result of all these factors resulted in Goa's tax revenue growing by less than 14% for July and August, 2017, compared to July and August, 2016.
But, now that the central government has compensated the state government for this shortfall, there is no reason to worry.
Meanwhile, Bandekar expects overall tax collections for October 2017 to show positive momentum, as he said, "There has been lot of demand in the market due to festive occasions like Diwali. Moreover, the season has started well, as we can see so many tourists. This shows that we are likely to have much higher tax collections in October 2017 compared to October 2016."
As of now, people have been filing simplified GST return. Under which, the tax-payers don't have to show proof of purchases to get input-tax credit. But, in October, tax-payers will be filing, for the first time, detailed GST return for July under which they will have to show proof of purchases to justify the input-tax credit they have taken.
Bandekar said, "Thanks to detailed GST return, we will be able to find out cases, wherein people had taken more input-tax credit than they were entitled to. We will reclaim extra tax credit given to them, which may also boost our
tax revenue."
Moreover, trade was also affected because businessmen were struggling to adjust with GST. Certain taxes like entry tax were totally abolished as well. The net result of all these factors resulted in Goa's tax revenue growing by less than 14% for July and August, 2017, compared to July and August, 2016.
But, now that the central government has compensated the state government for this shortfall, there is no reason to worry.
Meanwhile, Bandekar expects overall tax collections for October 2017 to show positive momentum, as he said, "There has been lot of demand in the market due to festive occasions like Diwali. Moreover, the season has started well, as we can see so many tourists. This shows that we are likely to have much higher tax collections in October 2017 compared to October 2016."
As of now, people have been filing simplified GST return. Under which, the tax-payers don't have to show proof of purchases to get input-tax credit. But, in October, tax-payers will be filing, for the first time, detailed GST return for July under which they will have to show proof of purchases to justify the input-tax credit they have taken.
Bandekar said, "Thanks to detailed GST return, we will be able to find out cases, wherein people had taken more input-tax credit than they were entitled to. We will reclaim extra tax credit given to them, which may also boost our
tax revenue."
