Panaji: Chief Minister Pramod Sawant told the Legislative Assembly that the state has not incurred any loss in Goods and Services Tax (GST) revenue due to companies routing their sales and billing through corporate offices located outside Goa.
Sawant, in a written reply tabled on the floor of the House during ongoing monsoon session, said that the GST regime rolled out with effect from July 01, 2017 is a destination or consumption based tax regime.
“Therefore, the tax on goods and/or services gets accrued to the State/UT where it is
actually consumed,” Sawant said.
The chief minister has further added “Therefore, there is no question of loss of any revenue as it is the basic principle of this taxation regime and the State of Goa gets GST on all goods/services actually consumed in Goa irrespective of where
they were manufactured.”
Sawant was responding to a question by Maharashtrawadi Gomantak Party MLA Jit Arolkar who had questioned whether the Goa Government is aware of the loss of GST revenue to the State on account of these companies routing their sales and billing through Corporate Offices located outside Goa or by declaring the ‘point of sale’ outside Goa despite the manufacturing activity taking place within the State.
The chief minister, who also holds finance portfolio in his cabinet, said that on
the same lines for all goods manufactured within Goa the tax will accrue to the respective State/UT where they are actually consumed.
“The part of goods which are manufactured within Goa, if are also consumed within
Goa then the tax accrues to the State of Goa,” he said.
The monsoon session of Goa legislative assembly began on Monday and will culminate on August 8.
