Although
the Union government is yet to notify the CST reduction of 3%
to 2%, both the states are stressing on full compensation of
the revenue loss from the government because of cut in CST
rate.
At
present, Punjab and Haryana are collecting Rs 340 crore and Rs
1,506 crore, respectively, as revenue from CST. Both Punjab
and Haryana are expecting to receive Rs 60 crore and Rs 150
crore as part of compensation from the Union government.
‘‘Earlier,
there was a proposal to increase the rate of VAT ( value-added
tax) from 4 to 5% but this idea has been rejected by the (VAT)
panel. Now, we are told that the loss would be compensated
through budgetary support,’’ Punjab excise and taxation
commissioner, A Venuprasad, said who participated in the VAT
panel meeting in Delhi on April 16.
‘‘Punjab
will not impose any new tax to make up for the loss,’’ he
added.
Similarly,
Haryana excise and taxation commissioner, Arun Kumar, said,
‘‘Presently, there is no proposal as such with regard to
introduce any new tax for compensating the loss.’’
Gujarat
and Kerala have proposed imposition of additional tax.
Meanwhile,
industries in both the states are in a state of confusion
because of lack of clear stand of the government on the CST
rate cut from 3 to 2%.
Industry
representatives have complained that their customers were
accusing them of charging 1% higher CST by saying that the
government had already announced the CST cut from 3 to 2%.
So
