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GST may hit Centre’s revenue by Rs. 1.5 lakh cr

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The Centre may lose over Rs. 1.5 lakh crore revenue from cess and surcharge if the goods and services tax ( GST) is fully rolled out in 2017- 18.
However, the government may get a cushion for a few years as the chances are that the GST may be implemented without petroleum attracting the new indirect tax to begin with. Close to 70 per cent of the cess and surcharge from excise duty and service tax was accounted for by petroleum only.
Revenue from sources like cess and surcharge on excise and service tax has been budgeted at Rs. 1.55 lakh crore in 2016- 17, or 14.7 per cent of the Centre’s total net revenue after devolution to states. The budgeted revenue from cess and surcharges more than doubled from 2014- 15 and is 22.5 per cent higher than in 2015- 16.
In 2014- 15, Rs. 75,232 crore came in as cess and surcharge, or 8.32 per cent of total tax revenue after adjusting for states’ share.
In the previous financial year, Rs. 1.26 lakh crore accounted for 13.3 per cent of the Centre’s total net revenue.
The government is hopeful of gaining majority for passing constitution amendment bill for GST in the Rajya Sabha in the monsoon session. In the current financial year the government has budgeted Rs. 10000 crore revenue from Swachh Bharat cess, Rs. 5000 crore from Krishi Kalyan cess and Rs. 3000 crore from Infrastructure cess.
Business Standard New Delhi, 06th July 2016

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