In the questionnaire, it is revealed that the Gujarat government has received more income in terms of indirect taxes after GST implementation. Nitin Patel, Finance minister of state and deputy chief minister has announced the data revealing the income received from taxes before and after GST implementation. The figure shows that the income of government has increased post-GST as it is Rs 30,894.92 crore this period between August 1, 2017, to January 31, 2018.
The Minister was questioned by Talala Bhaga Barad, the Congress MLA in the state assembly at the time of Question Hour on 22 March. The answer was considered as a record for assembly.
As mentioned in the reply, the Gujarat government had gained Rs. 28,246.71 crores in term of income in the last year between August 1, 2016, and January 31, 2017. Further, the MLA had questioned about the government income that is there any loss born by the government after GST implementation and in a replay, it was clear that instead, the income has increased.
The MLA further asserted the number which government had to pay to the state government in order to compensate for losses in tax income.
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The Finance Minister of state replied, “No decrease in tax income was recorded in the state post-GST regime but the central government ought to pay the compensation to the state as per Article 5 of the GST Act considering 2015-16 as base year and the growth in income at a rate of 14 percent has to be counted every year.
Under this provision, the Gujarat government received Rs 2,534 crore as compensation.” The government confirmed that it had gained Rs. 28,246.71 crore income in form of indirect taxes in the last year between August 1, 2016, and January 31, 2017, which period is equivalent to August 1, 2017, and January 31, 2018, this time.
