Saturday , February 24 2018

GST effect: Centre’s fuel price cut, costs Rs 30 cr for Telangana State

Fuel and alcohol have together backed Rs 7,803 crore over VAT post-GST in the months of July and August in Telangana.

Fuel

Hyderabad: Alcohol and fuel have come to the release of the state exchequer, which has undergone huge losses since the application of the Goods and Services Tax (GST) on July 1st.

Both alcohol and fuel have been relieved from the GST that means that the Telangana state government gets to retain the revenue.

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Official administrators in the finance department stated the state government got Rs 2,126 crores per month over the VAT, apart from fuel and alcohol, previous to GST.

Yet, after GST, the revenue slithered to Rs 1,413 crore in the month of August. In the month of September, it slightly upgraded to Rs 1,596 crores.

The TS government lost almost Rs 1,000 crore in these 2 months. The commercial taxes department has fixed a collection target of Rs 36,000 crores this year.

The department would collect Rs 7,751 crore apart from fuel in the first three months from April month to June previous to GST, with an average amount of Rs 2,500 crore per month.

Yet, post-GST, the government got just Rs 2,729 crore in 2 months (July and August), amounting to nearly 50 percent reduction. In that, SGST (state GST) was Rs 1,642 crore and CGST was Rs 1,087 crore.

Fuel and alcohol have together contributed Rs 7,803 crore through VAT post-GST in July and August.

However, with the Centre reducing the price of fuel by Rs 2 per liter recently, the state government fears revenue loss of Rs 30 crore per month as VAT is imposed on the overall fuel price.

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