Nagpur: The state government is all set to increase goods and services tax (GST) grant of municipal corporations. The cash-strapped Nagpur Municipal Corporation’s (NMC) GST grant is likely to be increased from Rs52.57 crore per month (Rs630.84 crore/annum) to over Rs90 crore per month (Rs1,080 crore per annum).
Governor Ch Vidyasagar Rao issued a gazette notification on November 6 through which the norms to calculate GST grant of municipal corporations has been changed.
Since implementation of GST in July 2017, the grant was calculated taking into consideration the revenue of the municipal corporations during local body tax (LBT). The financial crisis of the civic bodies reportedly deteriorated as GST grant was being calculated less than demand and lower than the revenue during octroi.
The NMC’s demand was to grant Rs88.63 crore per month (Rs1,063.56 crore per annum). But the civic body got only Rs42.44 crore per month (Rs509.28 crore per annum). The grant was increased to Rs60.28 crore per month in August 2017 but was reduced to Rs51.36 crore per month in September 2017. It was again increased to Rs52.57 crore per month in April this year.
Citing NMC’s deteriorating financial crisis, city MP and Union minister Nitin Gadkari, along with some NMC office-bearers, had time and again requested CM Devendra Fadnavis to calculate the GST grant as per revenue during octroi and increase it by 17% every year. Gadkari had even raised the demand in his speeches at public meetings where CM was present.
As per the notification, now the government will calculate the GST grant as per the claims of the NMC subject to its satisfaction. This will help CM to decide what amount of GST grant should be given to 18 municipal corporations. The state’s urban development department under the CM will now issue a new notification announcing new figure of GST grant soon.
NMC official told TOI the civic body should be given GST grant of Rs98 crore per month (Rs1,176 crore per annum). “Grant of Rs88.63 crore per month (Rs1,063.56 crore per annum) was calculated in the last fiscal. After adding a rise of 17%, our GST grant applicability will increase to Rs98 crore per month (Rs1,176 crore per annum),” he said.
Source : https://timesofindia.indiatimes.com/city/nagpur/nmc-to-get-over-rs90cr/month-as-gst-grant/articleshowprint/66659509.cms