All states under revenue loss due to GST: Sushil Modi

Deputy Chief Minister of Bihar Sushil Kumar Modi Wednesday said all states are reeling under revenue losses following the implementation of the goods and services tax regime, introduced Jul 1. "It will take at least two more months to get clarity on which state is under how much loss. As of now, all states are under loss," Modi told reporters in a press briefing after reviewing the operations of the Goods and Services Tax Network in a meeting. Modi, who heads the group of ministers constituted by the GST Council to look into issues relating to information technology under GST Network, met the organisation's Chairman A.B. Pandey and Chief Executive Officer Prakash Kumar along with other ministers in his panel.

Officials from Infosys Ltd, the information technology infrastructure provider for GST Network, were also present at the review meeting. In its last meeting on Sep 9, the GST Council had decided to form a five-member panel to look into the technical glitches in GST Network. Agriculture Minister of Karnataka Krishna Byre Gowda, one of the members of the panel, said his state has received 11.89 bln rupees as goods and services tax compensation for revenue losses in Jul-Aug. The government had decided to compensate states for the next five years for revenue losses due to the implementation of the new indirect tax regime. The GST Council, which is scheduled to meet in the national capital Thursday, may positively consider lowering tax slab on the labour component in government project works, a senior Telangana government official said Wednesday. According to the official, the Council may consider reducing the tax slab to 5 per cent from the existing 12 per cent.

"Some of the State Government projects such as Mission Bhagiratha, Mission Kakatiya and two-bedroom housing scheme which are labour intensive will get benefited if they reduce the tax component. We are hopeful that GST Council consider the reduction," the official said.

The govt had decided to compensate states for the next five years for revenue losses due to the new indirect tax regime. Centre will have to wait for at least two more months to get clarity on which state is under how much loss