GST: Yanamala for study on revenue loss to AP
Hyderabad: The Andhra Pradesh government on Tuesday urged the Centre to depute a team of the National Institute of Public Finance and Policy (NIPFP) to study the ground reality in the state post bifurcation and arrive at the revenue loss the state will suffer due to implementation of the Goods and Service Tax (GST).
AP finance minister Yanamala Ramakrishnudu in his address at the meeting of the empowered committee of state finance ministers on GST held in Delhi, said Andhra Pradesh is likely to suffer a net loss of Rs 4,700 crore due to GST.
“We request the Centre to send NIPFP team to Andhra Pradesh to study the ground reality after bifurcation and estimate the correct RNR (revenue neutral rate) and standard rate for the state for the year to arrive at the loss of revenue in order to become eligible for correct compensation,” Ramakrishnudu said.
He reiterated that Andhra Pradesh will welcome the GST in the interest of the nation, even though there will be loss of revenue to the state.
He suggested that to reduce the problem of dual control tax payers having turnover up to Rs 1.5 crore, they should exclusively be under the control of the state authorities, which includes assessment, audit, enforcement, revision and appeal for both CGST and SGST. The tax payers beyond Rs 1.50 crore turnover should be subjected to control of both the central and state authorities. However, mechanism of joint control should be worked out in such a way that there is no hardship to the tax payer.