Bhubaneswar: In a bid to ensure growth of revenue collection by 14 per cent each year, the state government has made up its mind to demand extension of GST compensation for three additional years after the expiry of the first five years as mandated by the Constitution.
The GST came into effect across the nation July 1, 2017. According to the provisions of the Constitution (101st Amendment Act), the states are to be compensated for any loss on account of introduction of the GST for five years.
For the calculation of compensation, collection of the taxes merged in the GST in 2015-16 has been taken as the base year collection and 14 per cent has been taken as the annual
To secure its revenue growth rate, the Odisha government would appeal to the 15th Finance Commission (FC) to recommend extending the time period for another five years, sources in the Finance department said here, Wednesday.
State Finance Minister Niranjan Pujari would raise this issue before the 15th Finance Commission (FC) chairman NK Singh during the GST Council meeting to be held in Goa September 20.
The Centre is providing the compensation to state governments on a bi-monthly basis and the latter is getting its due on time, the sources said.
At the Goa meeting, the Council is likely to approve the proposal of the state to exempt GST on tickets of FIFA U-17 Women’s World Cup to be held at Kalinga Stadium here next year.
Pujari would also meet the FC chairman to submit a memorandum seeking Rs 2,000 crore fund from the Centre for development of Puri town.