Dehradun: The state government may face a setback in the year 2022. The central government will stop compensating the reduction in service and excise tax (GST) from June 2022. At the same time, the state government will have to raise an additional Rs 1500 crore. Where the GST was implemented in the state in 2017 and the central government accepted to compensate for the reduction in GST for 5 years. At the same time, it has also been noted that this concession for the state may end in June, 2022. The impact of this concession on the states has recently been studied by the National Institute of Public Finance and Policy.
According to the information received from the sources, the state will have to raise an additional Rs 1500 crore after GST compensation is over. That too when the growth rate of GST in the state remains at 14 percent. The collection in GST is continuously decreasing in the state. According to the Finance Department, a collection of Rs 6255.33 crore was estimated from GST in the year 2019-20. A total of Rs 3339 crore could be collected till November. Tax is levied at the point of sale in GST. The state is now producing more. In such a situation, most of the tax is going outside the state.
There is also a demand to increase the compensation for three years: For your information, let us tell you that like other states, Uttarakhand has also asked the Center to continue the system of compensating the reduction in GST for the next three years after 2022. Keep it. This demand has been made from the 15th Finance Commission. According to the Finance Department, if this demand is not accepted, then the state has no other option but to compensate from its sources. It is estimated that the situation will change in 2025.
There will be difficulty in front of the new government: It is also said that the state assembly elections will be held in the year 2022. In such a situation, the new government will have to face difficulties. According to the report, state governments will have to either increase their resources or increase the tax collection of GST. If this is not done, there will be a shortage of money for development schemes.
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