NMC receives Rs 73.40 cr as 1st installment of GST

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Nashik : Following enforcement of the Goods and Services Tax in the country by central government from July 1, it has become mandatory for the state government to distribute the GST grant to Municipal Corporations in the state before the 5th of every month. On the backdrop of this, Nashik Municipal Corporation has received Rs. 73.40 crore as the first installment of the annual GST grant.

The partial Local Body Tax in most Municipal Corporations in the state and octroi in Mumbai Municipal Corporation were scrapped from June 30. Government had not clarified about how and when Municipal Corporations in the state would get GST grant after enforcement of the GST.

They were confused over this. The government had declared that total revenue collected last year through octroi, partial LBT and government grant plus 8% hike would be given to the Municipal Corporations as the GST grant. Accordingly, the government gave it immediately to BMC and other 24 Municipal Corporations in the state. Central government also made it mandatory for the state government to transfer the GST grant to Municipal Corporations before the 5th of every month. It would be responsible if it failed to give it in time.

Nashik Municipal Corporation last year collected revenue of Rs. 810 crore in the form of LBT grant and partial LBT. Adding 8% hike to it, it became Rs. 875 crore. NMC will receive Rs. 875 crore this current financial year as the GST grant, but it received Rs. 220 crore in the form of LBT grant for April, May and June and partial LBT from industries. Considering this, NMC will receive Rs. 655-660 crore from the government in nine months that are left.

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