GST Bill, GST Bill Andhra Pradesh, GST Bill Impact Andhra Pradesh, GST Bill Impact Andhra Pradesh Revenue, GST Bill Impact Andhra Pradesh Income, GST Bill Impact Andhra Pradesh Revenue Collections, GST Bill Impact Andhra Pradesh Revenue GrowthCentral government is anxiously pushing to move the Goods and Services Tax Bill at any cost. GST will eliminate tax on tax and will bring uniform tax structure in the country. However states will be losing their income sources as there will be no chance for state taxes any further, if this comes in to effect.

Andhra Pradesh alone will be losing 4700 Crore per annum due to this move and the states are demanding that the loss should be compensated for five years after GST comes in to effect. Center is agreeing to this but this condition will not have a commitment in the act which means the states will be at mercy of the center and there will be no time bound for it.

For an instance, center had made similar promise of compensation when it brought Central Service Tax (CST). Till date, there are 7269 Crore CST dues for Andhra Pradesh alone. The state is scheduled to get Rs 935.74 crore for 2012-13 fiscal year, Rs 2,247.98 crore for 2013-14 and Rs 618.19 crore till June in 2014-15 fiscal before the bifurcation of the state.

The Union Finance Minister promised to release the first of the two installments for 2012-13 shortly which indicates center’s commitment. This can be a case with GST as well if there is constitutional commitment. This revenue loss will will have a huge impact on the ways and means position of the state government, and make states dependent on the center.