Govt to mop up ₹55,000 crore in first nine months after GST rollout

The Centre expects to mop up as much as ₹55,000 crore by levy of cess, including a big chunk from demerit and luxury goods, during the 9-month period of the current fiscal after the Goods and Services Tax (GST) is rolled out from July 1.

The amount to be raised through cess on coal as well as luxury items and sin goods will be used for compensating states for revenue shortfall following the new tax regime.

As per the revenue department’s estimates, ₹22,000 crore is expected to come from cess on coal, lignite and peat in the JulyMarch period of current fiscal.

Cess on tobacco is likely to yield around ₹16,000 crore, a person with knowledge of the matter told PTI. The remaining amount in the ‘Goods and Services Tax Compensation Fund’ will come from cess on pan masala, aerated drinks and motor vehicles, the source added.

The revenue department is hopeful that funds raised through different kinds of cess would be sufficient to take care any revenue shortfall faced on account of GST rollout.