Even as Maharashtra is set to lose a significant amount due to the new Goods and Services Tax (GST) slab structure that came into effect on Monday, the state government as of now has not decided to demand compensation for the losses, which is the line of approach adopted by the BJP-ruled states.
The state loss, according to highly placed sources, is Rs7,000 crore, although people in the know of the developments claim it might go beyond Rs10,000 crore.
On the contrary, the states ruled by the opposition parties have come together to raise their demands for the losses. The BJP-ruled states will accept whatever the Central government decides, sources say.
Meanwhile, the BJP has decided to take maximum political advantage of the GST slashing decision. Accordingly, all the trade bodies have been asked to display the benefits that the customers will be getting from the new structure. Besides advertisements, the shops and malls will display the new and the old GST structure, which is going to accrue benefits to the end customer.
For instance, the state wing of the All India Organisation of Chemists and Druggists will display the new structure at each medical shop.
Medical products that were earlier taxed at 12% GST will now fall under the 5% GST slab, resulting in a 6.25% reduction in MRP for customers. Similarly, the products that were charged 18% will save 11.02% with their inclusion in the 5% category. And, the products charged for 5% will now attract nil, end up saving 4.77% on MRP and those with 12% earlier and now categorised under zero per cent will save 10.72% on MRP.
The state wing of the chemists and druggists association has decided to sell its entire old stock –purchased under the earlier GST slabs of 12% and 18% – by charging GST at 5%, sources from the trade body said.
The BJP is keen on reaping the political benefits of the new structure, and the party leaders will put a major thrust on this in the coming days, it is said.
