Pimpri: The Pimpri-Chinchwad Municipal Corporation (PCMC) is likely to get more than the expected amount from the State government through Goods and Services Tax (GST) grant. The State government released Rs 128.97 crore GST grant for July in advance to the civic body.
If an annual grant is calculated based on this figure, the civic body will be getting Rs 1,548 crore per annum, which is Rs 156 crore more than the total earning from Local Body Tax (LBT).
Last fiscal, the PCMC earned Rs 1,393 crore from LBT which was scrapped as GST was introduced by the Centre. The State’s Urban Development Department issued the notification on Tuesday, releasing GST grant of Rs 1,385.27 crore to 26 civic bodies in the State.
The State did not clarify on the annual GST grant for these cities. However, the notification mentioned that the amount being released was 70 per cent of total grant payable for the month to these cities. If these figures are considered for annual payment, the PCMC is likely to get Rs 184 crore per month. If one calculates this figure for 12 months then PCMC is likely to get Rs 2,208 crore annually as GST grant.
Officials in PCMC said, “The government has not clarified on the ratio of released grant. Since the first quarter of the fiscal has passed, the civic body is likely to get GST grant as per current rates for nine months. So the civic body will get Rs 1,656 crore during this period.”
Monetary gains
Under LBT, PCMC was getting Rs 116 crore per month from the government against LBT and revenue it has generated from LBT on traders having turnover more than Rs 50 crore. With the launch of GST, PCMC stopped recovering LBT completely.
So far this year the civic body has earned Rs 298 crore from LBT. The State government has sanctioned Rs 66.89 crore LBT grant for May and June.
The government has sanctioned Rs 27.37 crore to PCMC as share from stamp duty collection from the city for the first quarter of the financial year. The government didn’t clarify whether civic bodies’ share from the stamp duties will continue or not. If that happens PCMC will have a big advantage.
