After Octroi’s abolition four days ago, the State Government has decided to pay their first instalment of compensation of GST. The first instalment is worth INR 700 Cr which the State Government will pay BMC.
State Finance Minister, Sudhir Mungantiwar, will hand over the cheque to Mumbai Mayor, Vishwanath Mahadeshwar, on Wednesday afternoon. Shiv Sena Chief, Uddhav Thackeray, will be present as well.
Because of the introduction of GST from July 1, Octroi was abolished in Mumbai. Octroi was a big source of revenue for the BMC. As the BMC has lost out on a big source of revenue, the State Government has decided to aid the corporation.
The amount will be handed over on Wednesday, July 5 at 12:30 pm at the Municipal Headquarters.
The Government has assured the BMC that introduction of GST won’t affect them in a negative way.