Center Going Back on GST Promise?

Central Government has promised to reimburse the losses incurred due to GST to the states. All the states have incurred huge losses since the new tax regime came into effect. For an instance, AP recorded 450 Crore Tax Collection decline in July.

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Normally, this amount has to be reimbursed by the Central Government. But then, the Center is refusing to honour the calculation since they say Business had slowed down in July due to GST and the decline in Tax Collections is due to lack of business and not due to GST.

GST Council will take a final decision on it. But the cash strapped states like Andhra Pradesh will suffer due to this. Except for Liquor, Land, and Petroleum Products, all the goods were brought under GST Tax Regime. The exceptions continue to be under the state taxes regime.