Chennai: Against the background of sustainable shortcomings in the GST collection and its replacement to the country, coupled with a single state of one tax grab the state autonomy, the Tamil Nadu government signaled changes after June 2022, when the center will stop providing compensation for the state government to lack collections tax.
When GST kicked in 2017, the center promised to compensate for the countries that faced a lack of tax collections for five years.
Contributions for TN on March 202 were Rs 20,033.02 Crore, white paper released on Monday showed.
The GST Council and the Tax Structure have been at the forefront of the tax debate between the DMK and the central government because the country maintains its autonomy in the tax collection has been captured by the center.
White paper reads: “The lack of buoyancy in GST revenue is a serious cause of concern and this is the main factor in which state fiscal health, Tamil Nadu in particular, will depend on after June 30, 2022.
Therefore the structure of the GST and alternative will dominate the discourse on relationships Fiscal state from next year.
“This paper is also critical of central levies on automotive fuel.
It is said, “very terrible instance has become a major change in the tax structure on petroleum products that are influenced by the Indian government.” It added: “The Government Government has received substantial additional income from levies on gasoline and diesel, the share of state government through the devolution of union customs is also substantially reduced.” Finance Minister TN Thiamivel Thiama Rajan is a vocal in his first meeting at the GST Council in May, where he called on board reform, by saying it became a “ceremonial seal” and “rubber cap authority”.
In an interview before, the Minister said the GST system currently has fundamental weaknesses, in addition to opposing methods of tax collected and distributed, in connection with them “problematic”.