With the increase in the cost of oil and tax collection due to GST, the states can get additional revenue of Rs 37,426 crore in the current financial year. This is said in a report. According to SBI Research, except for some states, the impact of GST on tax revenues is the same.
According to the report, on the basis of mutual consent in revenue of 16 of the 24 states, the tax is increasing at a minimum of 14 percent. The central and states have decided to increase the minimum 14 percent tax revenue by mutual consent. If this does not happen, the states will have to compensate. It said, "We have found that on a gross basis, the state got a profit of Rs 18,698 crore in 2017-18. If we add benefit to the increase in crude oil prices, then this figure reaches 37,426 crores."
If the state imposes taxes only on the basis of crude oil, then this amount is sufficient to compensate the revenue loss of Rs 34,627 crore. After the implementation of GST in July last year, the state's tax revenues increased in 2017-18.
This is due to increase compliance and tax scope where GST, Gujarat, Haryana, Maharashtra, Chhattisgarh, Jharkhand and Punjab get the most benefit. Karnataka, Bengal, Uttar Pradesh, Madhya Pradesh and Assam also saw a decline in the tax collection. Due to the change in the nature of taxation, these states had an impact. GST has included services, VAT, excise duty, entry tax and entertainment tax in the new tax system. It contributes more than 55 percent of the tax revenue of these states.
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