Make GST revenue sharing pattern 60:40 in favour of States: K.N. Balagopal
At present, GST revenues are shared 50:50 between the Centre and States
Kerala has sought changes in the sharing pattern for Goods and Services Tax (GST) revenues between the Centre and the States.
Finance Minister K.N. Balagopal, who attended the 53rd GST council meeting held in New Delhi on Saturday, said he had sought changes so that States get at least 60% of the share. At present, the GST revenues are shared 50:50 between the Centre and States, Mr. Balagopal said on Saturday. According to the Minister, the ratio should be revised to 40:60 in favour of the States.
Further, a decision at Saturday’s meeting, convened by Union Finance Minister Nirmala Sitharaman, to mention the name of the State which should receive the tax in the GSTR-8 form in the case of e-commerce transactions is expected to benefit Kerala in a big way, Mr. Balagopal said.
Traders from other States who sell products in Kerala through e-commerce platforms such as Flipkart and Amazon collect the Integrated GST (IGST). However, the returns they submit do not clearly mention the names of the consumer State, a situation which has been leading to tax loss for Kerala, Mr. Balagopal said. The new decision taken by the GST Council addresses this problem, he said, adding that the council had accepted Kerala’s proposal in this regard.
Kerala has also asked the council to review its recommendation to introduce a sunset clause from April 1, 2025, for receipt of any new application for anti-profiteering under GST, Mr. Balagopal said. Kerala has demanded measures for preventing profiteering under the GST system, observing that the public had not benefitted from an earlier decision to reduce the tax rates of several items from 28% to 18%.
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