Goa’s GST Revenue Safe, Says CM Sawant
No GST loss from out-of-state corporate billing.
Goa Chief Minister Pramod Sawant has assured that the state faces no Goods and Services Tax (GST) revenue loss due to companies routing sales and billing through corporate offices outside Goa. In a written reply during the ongoing monsoon session of the Goa Assembly, Sawant, who also manages the finance portfolio, clarified that the GST regime, effective from July 1, 2017, operates on a destination-based tax system.
“Tax on goods and services accrues to the state where they are consumed,” Sawant explained, addressing concerns raised by Maharashtrawadi Gomantak Party MLA Jit Arolkar. Arolkar had questioned whether Goa was losing revenue due to companies declaring points of sale outside the state despite manufacturing within Goa.
Sawant emphasized that Goa collects GST on all goods and services consumed locally, regardless of their manufacturing origin. Similarly, for goods manufactured in Goa but consumed elsewhere, the tax accrues to the consuming state or union territory. “If goods manufactured and consumed in Goa, the tax stays with Goa,” he added.
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The statement dispels fears of revenue leakage, reinforcing the consumption-based principle of GST. The monsoon session, which began on Monday and runs until August 8, continues to address key legislative matters for the state.
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