Odisha has registered a growth of 2.3 per cent in tax collections after implementation of the Goods and Service Tax (GST) in July this year, State Finance Minister SB Behera informed the Assembly while replying to a question today.
Behera said the State has collected ₹3735.14 crore as GST from July to October, which is about 2.3 per cent more than the corresponding period last fiscal.
VAT on petroleum
In the pre-GST regime during 2016-17 fiscal, the State had collected ₹3,651.28 crore from July to October 2016, the Minister said, adding that the increase in tax collection is 2.30 per cent.
Between July and October, 2017, the State collected tax worth ₹4,415.20 crore from petrol, diesel, turbine fuel, natural gas, crude oil and liquor, which are out of the GST ambit.
He said the Indian Oil Corporation Ltd (IOCL) has paid ₹2,934 crore to the State as the Central PSU did not make payment from December 2015 to July 2017. Though IOCL was collecting the VAT, it had not make payment to the State, the Minister said.
As per the provisions of the GST law, the Centre will compensate States for the losses suffered under GST. Behera said the Centre has provided the Odisha government ₹1,020 crore on account of loss of tax after GST implementation.
“The State has got ₹333 crore as compensation in July-August whereas ₹687 crore has been sanctioned by the Centre for September-October,” the Minister informed.
GST on handicrafts
Replying to a question, the Minister said the State government has been demanding that the Centre reduce GST on handicrafts. After the State raised the issue before the GST Council, tax on Sambalpuri saree has been reduced to 5 per cent, he said.
But, the 12 per cent tax still persists on Sambalpuri sarees priced above ₹1,000, the Minister said.
Chief Minister Naveen Patnaik has requested Prime Minister Narendra Modi to exempt handicraft products from GST, Behera said, adding that he has also raised the issue in the GST Council meeting.