Shillong, Nov 21: Meghalaya chief minister, Mukul Sangma on Tuesday said that due to incapability of the system being put in place, the state could not assess properly collection of revenue under Goods and Services Tax (GST).
Mukul told reporters here that the state cabinet was briefed on the overall revenue scenario and challenges being faced while implementing GST in the state.
After the rolling out of GST, 9,546 tax payers were registered under the new tax regime out of 25,852 who were earlier registered under the Value Added Tax.
Another 5,752 new tax payers have also registered under GST.
He said that instead of all tax payers file their returns, only 40 per cent could file because the system put in place was not capable, and the tax payers have to face lot of problems.
Though the state expected much more revenue than the projected 14 to 15 per cent, Mukul said, revenue collection could not be assessed properly since the system being put in place was not capable in ensuring smooth implementation of GST.
Meanwhile the chief minister alleged the BJP-led NDA government at the Centre of targeting big investors by not allowing input tax credit (ITC) in tourism sector while implementing GST.
“This issue has drawn the attention of the state government in respect of infrastructure being built like hotels in tourism sector. They (Centre) did not allow input tax credit in tourism sector whereas the same is being allowed for other infrastructure,” he said.
Stating that the Centre has a separate parameter for tourism sector, Mukul said that this may discourage people from investing in tourism sector, Mukul said while terming the Centre’s decision as “abnormal.”
“This is a paradox especially when the Centre also has schemes for promoting tourism. The move will defeat rhetoric of the Centre to promote the nation including Meghalaya a destination as well as promoting hospitality sector,” he said.
Demanding clarity from the Centre on this abnormal approach, the chief minister said that though implementation of GST was being considered something which would be genuine simple tax, and not like a “Gabbar Singh tax.”
“The issue will be taken up at the political level by the chief minister, and I will write to other counterparts also on this issue,” he said.