Nagpur: Finally, there’s some good news for the cash-strapped Nagpur Municipal Corporation (NMC). Chief minister Devendra Fadnavis has increased the civic body’s goods and services tax (GST) grant from Rs630.84 crore per annum to Rs1,038 crore per, an increase by a whopping Rs407.16 crore.On Saturday, TOI had reported that governor Ch Vidyasagar Rao issued a gazette notification dated November 6, through which norms to calculate GST grant of municipal corporations changed.Standing committee chairman Virendra Kukreja told that TOI Fadnavis approved a hike in GST grant of the NMC in a meeting held at Mumbai. “NMC used to get Rs52.57 crore per month (Rs630.84 crore/annum) as GST grant. Now, it will receive Rs86.50 crore per month (Rs1,038 crore) from December,” he said.Kukreja expressed gratitude towards Fadnavis and Union minister Nitin Gadkari for the hike. “Now, the NMC can execute developmental works without any hurdles. It is a big relief for us and the city,” he said.The state government had abolished local body tax (LBT) and replaced its with GST from July 1, 2017. The NMC’s revenue from LBT was very low as compared to that generated during the octroi regime. The GST grant was calculated taking base of revenue during LBT.Since then, Gadkari and NMC-office bearers, especially Kukreja started to pursue with the CM to calculate GST grant as per revenue during octroi and increase its by 17% per annum. The civic body’s demand was to grant Rs88.63 crore per month (Rs1,063.56 crore per annum).However, the NMC got only Rs42.44 crore per month (Rs509.28 crore per annum) in July 2017. The grant was increased to Rs60.28 crore per month in August 2017 but was reduced to Rs51.36 crore in September 2017. It was again increased to Rs52.57 crore in April this year.The NMC’s financial situation deteriorated as a result of low GST grant. After spending on salaries and other establishment costs, the NMC was left with low balance, thereby affecting developmental works.Last month, Fadnavis had approved special grants of Rs150 crore for the NMC. The CM is also likely to approve more special grants of Rs175 crore by the end of this month or next.In a nutshell* NMC’s revenue from octroi was satisfactory* State government replaced octroi with LBT* NMC’s revenue declined to a great extent due to LBT* Government replaced LBT with GST in July 2017* GST grant was calculated taking base of revenue during LBT* NMC got GST grant much less than it had demanded* CM Devendra Fadnavis changed formula to calculate GST grant* Now, government can consider whatever demand of NMC if it founds deserving* Fadnavis increased NMC’s GST grant to Rs1,038 crore per annum

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