Patna: Bihar Deputy Chief Minister Sushil
Kumar Modi on Sunday demanded adequate compensation for the
revenue losses it would suffer after the implementation of the
Goods and Services Tax (GST) from April next year.
"Our past experience with the Centre has been very bad in
seeking compensation for revenue losses by implementing
taxes introduced by the union government such as the Central
Sales Tax (CST)," Modi said.
Asked how much the state would lose if the GST was
implemented, Modi, said "though we have not calculated the
losses, it will definitely have negative impact on several
counts such as state's share in entry tax."
"The state will lose around Rs 600 crore on entry tax
as the tax will be merged with GST," he said.
The state would lose another Rs 260 crore as service tax from
the Centre.
Modi said the state finance ministers would be meeting
Pranab Mukherjee on October 19 where all
these issues would be discussed threadbare.
The GST regime would replace most of the indirect taxes
levied by the Centre like excise and service tax and would
include state-levied taxes like VAT, octroi and purchase tax.
Bureau Report
First Published: Sunday, October 18, 2009, 18:49