One-Third of State Revenue to Be Outside GST Purview
GST started with the promise of 'one nation, one tax'. But keeping multiple state taxes outside its purview defeats the exact purpose of the new tax regime.
15th May, 2017GST is well on its way to being implemented on the appointed day. However, new research shows that as much as one-third of the revenue from states may be out of the purview of the new tax regime. Petroleum, oil and lubricants, real estate, and alcohol contribute about 37% of the tax revenue in most states. Keeping these sectors outside the purview of the GST tax not only goes against the motto of ‘one nation, one tax’ but also against the crackdown on the illegal trade that GST is supposed to represent.During the current fiscal year, the revenue from alcohol sales alone is projected to be around INR 83,300 crores with states like Karnataka and Kerala at the top of the list.As reported in Economic Times