- BJP governed Gujrat has raised concern for extra compensation for revenue losses, as states could suffer if GST (GST) is introduced
- Gujarat is seeking compensation of 2% at least of the centre share of Inter State GST (IGST) collections, the issue was flagged during the UPA government as well
- The issue was taken up amongst the empowered committee of state finance in Delhi and the chairman told that though the state has raised the concern but the centre is yet to answer upon the same other manufacturing states like Tamil Nadu has written to the Prime Minister recently
- The sale of goods and services produced in one state and consumed in another and the IGST collections are raised from these proposed taxes
- The shares will be divided among the centre and states where the sale takes place and Gujarat wants some part of collections with the state in which the products are made
- Read at: http://www.thehindu.com/todays-paper/gujarat-raises-red-flag-on-gst/article6343626.ece