Telangana and Andhra Pradesh are likely to adopt the January-December fiscal year (FY) if the GST (Goods and Services Tax) is implemented by July 1, government sources say.
According to a CNBC-TV18 report, Telangana officials visited Madhya Pradesh recently to study the calendar year model and were convinced to implement the same in Telangana.
On May 2, Madhya Pradesh became the first state to adopt the January to December fiscal after discussions with the governing council of NITI Aayog last month.
Prime Minister Narendra Modi, too, is keen on shifting to a January-December fiscal and has urged the states to do same, according to a PTI report.
The change was initially suggested so that India is not affected by the drought in June and September. Changing the fiscal year will help buffer India's budget. Modi suggested that this change is essential to boost the agriculture economy.
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