GST rollout: Govt to shell out additional Rs 17,000 cr

In FY15, the Centre took a hit of over Rs 17,000 crores in offering these exemptions. And the finance ministry is of the view the same kind of fiscal hit may have to be absorbed if GST rolls out next financial.

The Narendra Modi government has listed out the Goods and Services Tax (GST) on top of its legislative agenda. And even as the push continues, it could cost the centre a little more than it had earlier planned.

Centre may have to shell out an additional Rs 17,000 crore, when it rolls out its ambitious good and service tax. The reason, the Centre may give a commitment to industries to pay area-based exemptions as a cash subsidy. Area-based exemptions deal with lower central excise duties for industries doing business in Uttarakhand, Himachal Pradesh, and to some extent in the North East states as well as Jammu & Kashmir.

In FY15, the Centre took a hit of over Rs 17,000 crores in offering these exemptions. And the finance ministry is of the view the same kind of fiscal hit may have to be absorbed if GST rolls out next financial.

Sourcehttp://www.moneycontrol.com/news/cnbc-tv18-comments/gst-rollout-govt-to-shell-out-additional-rs-17000-cr_1387187.html?utm_source=ref_article

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