Karnataka makes up for revenue fall with IGST

The state government which fell short of its revenue collection on account of the Goods and Services Tax (GST) introduced in July,  has made up for the shortfall through its share of IGST.

The mid-year review of the state's finances tabled in the  Assembly revealed that of the IGST collection of Rs 4100 crore, Karnataka received a net settlement of Rs 1470 crore. It also collected Rs 140 crore  from VAT and other subsumed taxes pertaining to periods before the introduction of GST, giving it a total  revenue  of Rs 5710 crore for the period in question. 

The excise collections have fared well with the state mopping up  Rs 8539 crore in the first six months of 2017-18 as against the budgeted estimate of Rs 18050 crore for the entire year, meeting 47 per cent of its target.

The Motor Vehicles Tax collection of Rs 6006 crore for the first half of the year has grown 11.1 per cent over the same period in 2016-17 and the state  succeeded in meeting 46 per cent of its target for the year in Stamp and Registration fee collection.

But its non-tax revenue comprising  receipts from mining, interest and others has fallen short, amounting to Rs 2601 crore  meeting just 37.46 per cent of the budget estimate.