GST Loss: GoI paid JK Rs 1307 crore as compensation in one year
Srinagar, Aug 13: One year past the implementation of the Goods and Service Tax (GST), New Delhi has released more than Rs 1307 crore to the state as compensation for the loss in revenue.
Jammu and Kashmir is one among the states that suffered losses in various sectors due to GST.
The GST compensation for Jammu and Kashmir since July 2017 has jumped to Rs 1307 crore, surpassing the states like Andhra Pradesh, Arunachal Pradesh, and Tamil Nadu.
As per the figures, the GST compensation initially for July and August last year has been Rs 367 crore.
The following two months—September, October—saw a funding of Rs 314 crore by New Delhi.
Rs 127 crore were released by New Delhi to Jammu and Kashmir as GST compensation for November and December.
In January, February and March, New Delhi released Rs 329 core and Rs 23 crore, respectively, as GST compensation.
Rs 147 crore was released for April-May.
As per provisions in Section 7 of the GST (Compensation to States) Act, 2017, loss of revenue to the states on account of implementation of Goods and Services Tax shall be payable during transition period.
Similarly, the compensation payable to a state shall be provisionally calculated and released at the end of every two months during transition period of five years.
As per the figures, GST compensation amounting to Rs 52,077 crore has been paid to states and UTs during the 11-month period through May 2018.
As per the data, states/UTs have been paid GST compensation of Rs 48,178 crore for the period July 2017 to March 2018 and of Rs 3,899 crore for the period of April-May 2018.
Jammu and Kashmir joined GST regime on July 7 after the law was passed by the Legislative Assembly amid opposition by traders and other organisations.
The GST implementation impacted various sectors of the state particularly industrial sector and LoC trade.
People associated with the handicrafts sector claimed that post-GST have witnessed a decline by almost 25 percent compared to 2016.
On LoC trade, the tax law also resulted in levying of double taxation on intra-Kashmir trade.