Bhubaneswar: Even as the stage is set for the introduction of Goods and Services Tax (GST) across the country from July 1, the Odisha government, which has welcomed the new tax regime, is yet to calculate its impact on resources generation of the State.
Though the Odisha government has described the Goods and Services Tax as a major financial reform, there is yet to be a consensus on how far it will boost the state’s finances.
Since GST is going to be implemented from 2017-18, the Odisha government had demanded payment of CST compensation upto 2016-17 financial year. Several demands of the state government when the GST was in the discussion stage have also been ignored.
Meanwhile, the Odisha government has reiterated that handloom and handicrafts products should be exempted from the purview of taxation. At present, handloom products like Sambalpuri, Bonkei, Maniabandha and Tussar sarees manufactured by weavers are exempted from tax. Similarly, handicraft goods like applique, stone and wood works, terracotta products, patta paintings and tribal crafts are exempted from tax.
The demand was raised by Finance Minister Sashibhusan Behera at the meeting of the GST Council held at New Delhi recently.