The Andhra Pradesh Government has raised issues relating to > implementation of Goods and Services Tax and its impact on State’s revenues and wanted cushion against revenue loss to the State.
State Finance Minister, Yanamala Ramakrishnudu, during a meeting with the Empowered Committee on Goods and Services Tax held at New Delhi and later with Union Finance Minister on Thursday highlighted the far reaching impact on revenue administration but also on the Centre-State fiscal relations.
The Minister expressed concern that GST might have adverse impact on the State revenues and that State has to be compensated for such loss.
He said though the Government of India has to reimburse Rs 12,500 crore, which was the Central Sales Tax forfeited by the State since 2009-10, the State has not received any reimbursement. Similar fate might befall the GST, he felt.
Therefore, he wanted explicit constitutional provisions to be incorporated to protect the State’s interest when the GST is introduced.
Also, Andhra Pradesh wants petroleum products, alcohol and tobacco, food products and food grains to be kept out of GST.
The State Finance Minister has requested that Andhra Pradesh, which has been assured for the special category state status, should be treated on par with other special category states mentioned in the proposed 115 draft amendment to the Constitution of India in so far as GST is concerned.