State Govt stares at Rs 8807 crore debt Notice served to GST defaulters

IMPHAL, Jan 12: The Department of Taxation has served notices to many GST registered firms including some major automobile dealers for failure to file returns.
Even though GST was introduced all over the country including Manipur on July 1 last year, many registered firms and agencies of the State did not file any return for supplies made or received from July to December last year.
The notice served today asked all the defaulting firms/agencies to file return within 15 days failing which the tax liability would be assessed under GST Act based on the relevant materials available at the Taxation office.
Apart from assessing tax liability, the defaulters would be liable to pay interest and penalty.
The notice also mentioned that no further communication would be issued for assessing the tax liability.
The notice would be deemed withdrawn in case the return is filed before tax liability assessment order is issued.
In case the defaulting firms/agencies lack adequate IT facility and GST knowledge, they may seek help from the departmental facilitation centre opened during office hours in the premises of Department of Taxes, Old High Court building, North AOC, mentioned the notice.
On the other hand, with the removal of the special category status given to North Eastern States following establishment of the NDA Government at the Centre which was soon followed by cessation of Special Plan Assistance, the State Government is now staring at a very grim financial situation.
The State Government has already been facing a financial debt of Rs 8807.83 crore at the end of the 2016-17 financial year.
On the other hand, the Union Finance Minister has invited the State Finance Minister to point out the State Government’s special areas of interests which may be reflected in the Union Budget 2018, informed a source.
Union Finance Minister Arun Jaitley would table the Union Budget 2018 in the Parliament on February 1.
Deputy Chief Minister and Finance Minister Y Joykumar would attend the GST Council meeting which would be held on January 18 at Delhi.
Advantages and disadvantages encountered by different States with regard to implementation of GST would be deliberated at the meeting which would be chaired by the Union Finance Minister.
The meeting may also adopt a resolution to amend the GST Act if the States feel it necessary to amend the Act.
To attend the GST Council meeting and highlight the State’s special area of interest which may be reflected in the Union Budget 2018, Finance Minister Y Joykumar and Taxation Commissioner Hrishikesh Arvind Modak would leave Imphal for Delhi on January 17.
Even though the State Government is now able to collect bigger revenue following implementation of GST in the State since July 1 last year, the State Government has been facing a debt of Rs 8807.83 crore and this is written clearly in both the Finance Accounts and Appropriation Accounts of 2016-17 which were published recently by the Comptroller and Auditor General of India (CAG).
Out of the total amount indebted to the State Government, the lion’s share of Rs 3779.49 crore is market loan and the interest paid by the State Government for this market loan is Rs 286.23 crore.
The State Government also borrowed Rs 1513.19 crore from Small Savings and Provident Fund and the Government paid interest of Rs 118 crore against this amount.
The indebted amount is also inclusive of Rs 2,028.73 crore liabilities, Rs 366.96 crore loan and advance from Central Government and other internal debt of Rs 1,119.43 crore.
For the total financial debt of Rs 8807.83 crore, the State Government interest is of Rs 543.75 crore. Moreover, the State Government has no contingency fund, added the source.

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