Centre will compensate loss of Rs. 2,600 crore per annum for 5 years
Andhra Pradesh is geared up to migrate to the Goods and Services Tax (GST) regime expected to be rolled out on July 1 from the existing Value Added Tax (VAT) system, according to Commercial Taxes Commissioner J. Syamala Rao.
Addressing a press conference here on Wednesday, Mr. Rao said the AP was one of the top States in terms of preparedness for the GST with 92% of traders enrolling themselves to migrate to it.
There were 2.5 lakh dealers registered with the government. Of this, about 70,000 dealers had turnover less than Rs. 20 lakh.
The dealers whose turnover was above Rs. 1.5 crore would be covered under the GST. About 5,000 dealers with turnover less than Rs. 20 lakh and were into the service sector would also come under its purview, he said.
The Commissioner said the government was expecting a loss of Rs. 2,600 crore per annum due to the regime. The Central government would compensate it for the next five years.
The loss would have been another Rs. 600 crore but for the State government’s efforts relating to taxation on territorial waters.
Author: Microvista-Team
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