State Government have to deal with two major issues- First one businesses have to stabilize their operations after the implementation of the new indirect tax regime and the second one to introduce 7th Pay Commission for state employees. On one hand, from GST government earns revenue and on another hand to introduce 7th pay commission government will have to manage Rs 7000 crores. So it is essential to know what is the actual condition of the government. Currently, the expenses of government are increasing and in the first quarter (April- June) earnings of Government has increased, but in the month of June impact of GST is foreseeable. Due to this, the tax collection of government may be declined by Rs 600 crores.
The transport industry impacted with the implementation of Goods and Services Tax Regime (GST). Transport industry had collected tax nearly Rs 290 crores in the month of June whereas in the month of July till now the industry has collected tax Rs 2011 crores. Finance Department said that actual impact of GST would come in front by 20th August. So not to worry as tax rates in GST declines but the Central Government would provide relief by 14% growth rate.
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However, to acquire this would take 15-20 days whereas, in the case of state tax, government get this amount of money quickly.
State Government has clarified that payments who made until 30th June which has also shown their bills, in such cases TDS deducted on the basis of Rajasthan VAT Act 2003. GST will not be applicable in such payments. Commercial Tax Experts Alok Gupta said that Before 30th June RVAT (Rajasthan Value Added Tax )Act 2003 was applicable in state., According to VAT regime TDS was deducted while doing payments. From 1st July Goods and Services Tax Regime was implemented which had replaced VAT compliance. But the payments made before 30th June treated on the basis of Rajasthan VAT Compliance. Gupta also clarified according to VAT compliance, 2006 rules of section 40 and sub- section- 6, TDS deduction was compulsory for the company and people while making payments.
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Commercial Tax Expert Gupta also said that, Payments made after the implementation of the Goods and Services Tax Regime, businesses whom annual turnover exceeds above Rs 2.50 lakh. As per the new GST regime, business entities have to pay 1 % SGST and 1% CGST. TDS deduction is still in the process under the Goods and Services Tax Provisions. When the Government approved this it will be officially declared.
