The state legislature will ratify the 122nd Constitutional Amendment relating to the Goods and Services Tax (GST) in a special session to be held on August 29. But the finance department is under pressure over how to compensate the expected loss of around Rs 20,000 crore once the GST is implemented.
The state legislature will discuss over a single line proposal to ratify the 122nd Constitutional Amendment relating to GST passed by Parliament in the recently concluded Monsoon Session. Four states have already ratified the Centre’s GST bill.
The Cabinet decided to call a special session of both the Houses of the state legislature next Monday. “Both the Houses will have to ratify the amendment. We will propose it as ‘This House is supporting the amended bill.’ We will either have a long debate over the proposal or the session will conclude within an hour,” said finance minister Sudhir Mungantiwar.
Meanwhile, a senior official from the finance department said once the GST is implemented, Maharashtra will lose a minimum of revenue ranging between Rs 20,000 crore to Rs 25,000 crore from the excise and sales tax department.
“Though the Centre has assured to compensate the revenue loss that will be suffered by the states, it will be a loss to states like Maharashtra which get huge revenue income from taxes,” the official said.
