Andhra Pradesh stands to lose Rs 4,700 crore revenue per annum once the Goods and Services Tax (GST) Bill comes into force, state finance minister Yanamala Ramakrishnudu said in Vijayawada on Thursday, even as he welcomed its passage in the Rajya Sabha.
"Andhra Pradesh government welcomes the passage of GST Bill in Rajya Sabha. The Telugu Desam (TDP) government has always supported taxation reforms and we supported the GST Bill in the larger interest of the country," he said in a statement.
Asserting that TDP, during its earlier regime, supported the Value-Added Tax (VAT) system, the minister blamed the Congress for creating obstacles in the passage of the Constitution Amendment Bill and delaying it by 26 months.
"A single tax system is beneficial both for the country and the states. I hope the proposed GST Council will take care of issues like revenue neutral rate, threshold amount and disputes between Centre-states and inter-state," the minister said.
Yanamala said since Andhra Pradesh would stand to lose Rs 23,500 crore over five years because of GST, it is the Centre's responsibility to bridge the gap.
Though tax on goods would come down because of GST, it might increase on services and also food grains. Tax exemption on online business would benefit the government as well as the consumers, he added.