Maharashtra Government modifies rules for providing higher GST compensation to civic bodies

After GST was introduced, the central government adopted a uniform rule to provide compensation for the loss of revenue

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Maharashtra government on Thursday amended rules for providing compensation for the loss of revenue under Goods and Services Tax (GST) to the local government bodies.

The state government claimed that some civic bodies approached and asked for increase in their compensation. Thus, the Fadnavis government has changed the rules taking over the decision-making power to deal with such cases.

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According to the media reports, earlier in the year 2016-2017, Nagpur civic body’s revenue collection was dropped irregularly. Bharatiya Janata Party (BJP) is in power in Nagpur’s municipality.

Earlier in July 2017, when GST was announced and implemented, it subscribed to a uniform rule to compensate municipal bodies for the loss of income including various kinds of tax collections. However, with Maharashtra’s cabinet decision will have the power to consider providing an increased compensation of GST for the civic bodies.

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