Local bodies seek steady income after GST roll out

New Delhi:  Fearing loss of octroi income after GST is implemented, Mumbai Municipal Corporation officials  suggested that it should be made mandatory for state governments to compensate local bodies for their loss as the new indirect tax regime is rolled out.  The Corporation representatives made the suggestion to a Select Committee of the Rajya Sabha on the 122nd Constitution Amendment Bill for rolling out of the Goods and Services Tax (GST).  Presentations were also made to the Committee on various aspects of the GST by the Ministry of Urban Development and Ministry of Panchayti Raj, sources said. The Finance Ministry officials were present at the meeting.  The financial issues concerning local bodies and Panchayti Raj institutions assume significance as the proposed GST will subsume all local levies and octroi in addition to excise tax, service tax and sales tax.