'States can't seek revenue-raising measures outside of GST ambit'

Within a few months after the roll-out of the revamped Goods and Services Tax (GST), revenues will tend to stabilise and then pick up, according to the Central Board of Indirect Taxes & Customs (CBIC) chairman Sanjay Kumar Agarwal.

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In an interview with Prasanta Sahu, he also said that in the case of industries like automobiles, who may have stocks on which cess is already paid (but will not apply for new products from September 22), the costs can't be offset.

On the demand for revenue compensation from some states, he said they could propose a mechanism only within the fiscal space available under the GST law.

Excerpts:

How fast do you seek to recover the revenue loss (estimated at ₹48,000 crore annually) from the GST recast?

It is an estimate on a mathematical basis, based on the consumption patterns in 2023-24.