India News | No GST Loss to Goa from Out-of-state Corporate Billing: CM Sawant
Get latest articles and stories on India at LatestLY. Chief Minister Pramod Sawant has said Goa has not incurred any loss in the Goods and Services Tax (GST) revenue due to companies routing their sales and billing through corporate offices located outside the state.
Panaji, Jul 23 (PTI) Chief Minister Pramod Sawant has said Goa has not incurred any loss in the Goods and Services Tax (GST) revenue due to companies routing their sales and billing through corporate offices located outside the state.
In a written reply tabled in the Goa assembly on Tuesday during the ongoing monsoon session, Sawant, who also holds the finance portfolio, said the GST regime rolled out with effect from July 01, 2017 is a destination or consumption-based tax regime.
"Therefore, the tax on goods and/or services gets accrued to the State/UT where it is actually consumed," Sawant said.
"Therefore, there is no question of loss of any revenue as it is the basic principle of this taxation regime and the State of Goa gets GST on all goods/services actually consumed in Goa irrespective of where they were manufactured," he said.
The chief minister said that on the same lines for all goods manufactured within Goa, the tax will accrue to the respective State/UT where they are actually consumed.
"The part of goods which are manufactured within Goa, if are also consumed within Goa then the tax accrues to the State of Goa," he said.
Sawant was responding to Maharashtrawadi Gomantak Party MLA Jit Arolkar, who asked whether the Goa government is aware of the loss of GST revenue on account of companies routing sales and billing through corporate offices located outside the state, or by declaring the 'point of sale' outside Goa despite the manufacturing activity taking place within the state.
The monsoon session of the Goa assembly began on Monday and will conclude on August 8.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)