Opposition tries to corner Maharashtra govt over GST implementation during special session
Mumbai city news: Nationalist Congress Party (NCP) legislator and former finance minister Ajit Pawar, said the state is already being burdened with a whopping debt of around Rs4.4 lakh crore.mumbai Updated: May 25, 2017 10:11 IST
On day two of the three-day special session, the legislative assembly discussed the main Goods and Service Tax (GST) bill which is likely to get ratified on Monday. Once the GST comes into effect from July 1, Maharashtra is likely to incur an estimated loss of Rs15,000 crore.
While the Centre will be compensating the state for the for the next five years, the Opposition said that after five years the state government is unlikely to be in a position to bear this additional burden.
Nationalist Congress Party (NCP) legislator and former finance minister Ajit Pawar, said the state is already being burdened with a whopping debt of around Rs4.4 lakh crore.
“This debt is increasing every year. Public sector undertakings run by the state government have also incurred loses worth Rs70,000 crore so far. How will the state manage the additional financial burden once the Centre stops compensating its after five years ?” he said.
NCP leader Jayant Patil, a former rural development minister, said the state is already short of revenue staff and it will be difficult for the government to adopt to the new tax regime with the existing manpower. He also pointed out the slow registration process of powerlooms across Maharashtra.
“Of the two lakh powerloom owners, only 2,000 have so far,” the NCP legislator said.
Raising the issue of levying GST on under construction projects, Patil said earlier developers paid just one per cent sales tax but will now have to pay up to 18 per cent, stamp duty and registration fee once the new tax regime is enforced. This will ultimately increase property rates affecting homebuyers, he added.
Countering Opposition’s claims, finance minister Sudhir Mungantiwar said though GST will be levied on under construction flats, the tax rate is yet to be finalised.
“It will be at par with the existing rate. We will enure that homebuyers aren’t burdened unnecessarily,” Mungantiwar said. He said the issue will be discussed in the next GST council meeting scheduled for June 3.