Telangana is looking at an additional revenues of ₹2,000-3,000 crore in the post-GST scenario. The state, which has not assessed the impact fully yet, feels that there would gain from the new tax regime but needs to wait for at least a quarter to assess the actual impact.
Chief Minister K Chandrasekhar Rao has held a review meeting to take stock of the implementation of the GST. The focus of the review meeting was whether the GST is good for the state and whether it will mean additional revenues.
The meeting, however, felt that the actual impact would reflect by the end of the December quarter.
Officials of the revenue department explained to the Chief Minister that the revenue inflow won’t be impacted for at least 50 per cent of the total tax collections as petroleum is not covered under the GST. They said they won’t see any problem with the remaining half too.
“Since the Centre has to give the state its share in the increased revenues, the allocation for the state in the Central funds will increase. On an average, the state will get about ₹2,000 to ₹3,000 crore more income a year,” a statement from the Chief Minister’s Office said.
The Chief Minister asked the officials to conduct awareness meetings on July 5, 6 and 7 in all the 91 Circles under the Commercial Taxes Department to clear doubts of traders and businessmen.
“Businesses with a turnover of below ₹20 lakh need not pay any tax. For businesses with turnovers ranging from ₹20 lakh to ₹75 lakh, the tax is only one per cent. Since a majority of businesses come under ₹20 lakh, there will be no additional burden on account of GST. We need to publicise this aspect,” the Chief Minister pointed out.