THIRUVANANTHAPURAM: Though it is widely perceived that it will be the service sector of the state that will generate more revenue once Goods and Services Tax (GST) is in force, this could be a wild dream to chase, according to a paper presented by associate professor of Gulati Institute of Finance and Taxation (GIFT), Jose Sebastian.
Introducing his paper at the arrangement exchange arrangement on GST sorted out by the Institute for Sustainable Development and Governance here on Friday, Jose Sebastian said that a study embraced by GIFT has demonstrated that the state represents only 1.30% of focal administration charge gathering in 2012-13. This is on the grounds that the state’s administration segment is ruled by little time representatives, greater part of whom falls beneath the proposed edge farthest point of Rs 10 lakh.
“What makes a difference is not the measure of the administration segment essentially, however the nearness of assessable administrations and the span of administration suppliers,” he said.
The state’s commitment is wretched when contrasted with states like Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Gujarat and West Bengal that record for 62.85% of administration assessment accumulations.
As indicated by the paper the advantage of GST for the state would come for the most part from the e-business division.
The paper likewise said that it is farfetched to anticipate that GST will take care of the monetary issues of the state. Regardless of the fact that it is accepted that GST will bring Rs 5,000 crore of extra income, it is not going to have a lot of an effect on the monetary front when the state is going to have an income shortfall of Rs 18,000 crore in the budgetary year 2016-17.