Telangana, Andhra Pradesh revenue loss post GST minimal

Hyderabad: States had feared that they would lose revenue due to the Goods & Services Tax, but the Telugu states have shown a very narrow revenue gap after the rollout of the one-nation one-tax. The state of Andhra Pradesh has the third highest collection of GST. The average monthly revenue collected by AP stands at Rs 1,512 crore and the department has the lowest shortfall of three per cent among the big states.

Telangana has the fourth highest collection with a monthly average of Rs 1,811 crore, and has a revenue gap of four per cent. Maharashtra tops the list with the highest collection — Rs 6,803 crore per month — followed by Tamil Nadu (Rs 3,349 crore). Tamil Nadu and AP have the same percentage of shortfall — three per cent.

The state of Andhra Pradesh has the third highest collection of GST. The average monthly revenue collected by AP stands at Rs 1,512 crore and the department has the lowest shortfall of three per cent among the big states. Telangana has the fourth highest collection with a monthly average of Rs 1,811 crore, and has a revenue gap of four per cent. Maharashtra tops the list with the highest collection - Rs 6,803 crore per month —   followed by Tamil Nadu (Rs 3,349 crore). Tamil Nadu and AP have the same percentage of shortfall — three per cent.

The GST Council of India collated the tax revenue of various states and ranked them according to the shortfall percentage. The council calculated the tax collected between August 2017 and June 2018 to arrive at the monthly average. In total, 29 Indian states and three Union territories collected Rs 44,620 crore through GST, as their monthly average.  Among the smaller Indian states, Manipur, Mizoram and Arunachal Pradesh have collected surplus amount. Officials with the state GST wing told this newspaper that the amount collected by the states goes into the state government exchequers.

As per the GST law, the Centre and the state collect equal percentage of tax on all products and services. The tax levied on intra-state trade goes to the Centre and the state coffers immediately, while IGST pool is divided between them as per a ratio mandated by the Finance commission.  However, the share varies depending on the inter-state GST collection. For example, Telangana in November 2017 collected GST of Rs 1,549. The state’s share was Rs 751 crore and the centre’s, Rs 799 crore.  Similarly, for the month of December 2017, the state collected Rs 1,511 crore, of which Rs 768 crore went to the Centre and the state GST was Rs 743 crore. 

“The share that goes to the centre is called ‘Settlement’, which includes IGST. The total collection is the revenue collected under different slabs including the one that is evaded, termed as GST ‘compliance’. For states that are unable to meet their targets, the centre will compensate them for the first five years. The Centre will periodically provide funds which will go to the state’s exchequer. Regarding tax evasion (compliance) the Intelligence wing of CGST in the state detected an evasion of Rs 500 crore in Telangana, primarily by infrastructure companies.