Karnataka Chief Minister Siddaramaiah writes letter to Union Finance Minister Arun Jaitley urging him to take up the issue of GST on handmade products during the next meeting of the GST council, ANI said. In his letter, the chief minister expressed his concern on the imposition of GST on handmade products, saying it has adverse effect on livelihood of artisans, who are engaged in producing such products.
Earlier, the Centre has provisionally released Rs 8,698 crore for all states and Union territories with legislatures, apart from Rajasthan and Arunachal Pradesh, as compensation for revenue losses incurred during the period of July and August due to implementation of GST, two officials, who were aware of the development told the Indian Express.
Even as the compensation payout stands at about 58 percent of the total amount of Rs 15,060 crore raised from cess during the first two months oafter the GST launch, it is likely to rise as the revenue losses to states were subdued because of higher-than-expected VAT collections in June, officials said further.
States had mostly benefitted in terms of higher VAT collections in June because of huge destocking by businesses before the new tax regime came into being from July 1, but now with VAT and other state levies subsumed in the new indirect tax regime, the Centre will have to consider the wider revenue gap while making the compensation payout for September-October next month, the officials said.
“A lot of to and fro is happening between the states and the Centre regarding the compensation payout. Rs 8,698 crore is a provisional figure and may change at the end of the year when revenue numbers would be finalised. Compensation payout is also expected to increase going ahead as July numbers were significantly lower due to high VAT collections by states,” one of the officials was quoted as saying by Indian Express.