The implementation of the GST or the Goods and Services Tax has already caused a lot of stir in the country and protests have been raised from various quarters regarding their rates and their manner of implementation. In Meghalaya, the GST has not yielded positive results so far. The state Cabinet had been updated about the revenue scenario after the tax was implemented and the findings are not very encouraging. Dr. Mukul Sangma, the CM of Meghalaya opined that although the Central Government had made it mandatory for tax payers to file the GST, most of them had trouble filing because the system kept crashing and it was very frustrating. He said that the Government had introduced such a scheme without putting the infrastructure in place and only 40% of the traders have been able to file their returns due to the incompetent system.
Moreover, the state government has also not been able to assess the trend of filing of returns post GST and as a result has not been getting its dues from the tax payers. It is still to assess, just like the governments of most other states, how much of revenue they should expect. That growth rate under the new regime will be about 40 to 50 percent as was the case after the VAT was implemented. CM Mukul Sangma also slammed the Centre for not allowing the input tax credit for the building adequate infrastructure for hotel and tourism sector which would have generated a lot of revenue, which in turn could have been used for developmental purposes.
He said that it was something truly abnormal and defeats the purpose of the hospitality sector and was also a failure on the part of the government that said it wanted to promote this sector. He said that the matter would definitely be taken up with the GST council and he would also write to other heads of state regarding this matter. The information came up that 25, 852 dealers had registered in Meghalaya for VAT and of them 9546 had registered under GST. Additionally, 5752 new tax payers had also signed up.