New Delhi: The revenue loss to states on account of GST implementation was Rs 24,500 crore between July-October and the Centre has released compensation to make up for it, Parliament was informed on Friday. As per the details, Karnataka got maximum compensation from the Centre at Rs 3,271 crore, followed by Gujarat (Rs 2,282 crore) and Punjab (Rs 2,098 crore). “…the revenue loss due to implementation of GST to the states for month of July to October has been estimated Rs 24,500 crore and the same amount has been released to the states as compensation to make up for the loss of revenue on bi-monthly basis for the month of July-August, 2017, and September-October, 2017,” MoS (finance) Shiv Pratap Shukla said.
Under the GST regime, a cess is levied on luxury, demerit and sin goods to make good the loss suffered by the states on account of roll out of the new indirect tax regime. This is levied on top of the highest tax rate of 28 per cent on these goods. “Since the rate of cess shall be such so as to maintain the pre-GST tax incidence on such goods therefore there may not be much difference in total tax incidence (tax plus cess) on these goods between the pre-GST and post-GST regime,” Mr Shukla said.
Meanwhile, the Centre has extended by 10 days the last date for filing of final sales return GSTR-1 till January 10 under the GST, sources said. Businesses with turnover of up to Rs 1.5 crore will have to file GSTR-1 for July-September by January 10 as against December 31 earlier.