GST will lead to lowering of prices in the long run’
Sushil Kumar Modi, Deputy Chief Minister of Bihar and Chairman of Empowered Committee of State Finance Ministers, said here on Sunday that a broad consensus has been reached on almost 80 per cent of the contentious issues pertaining to the Goods and Services Tax (GST).
Though the Union government had agreed to compensate the States against such losses for the first five years, the States still need concrete assurances, particularly since there has been a delay in compensating States affected as a result of lowering the GST, said Mr. Modi.
He explained that some States were apprehensive that as sources of tax revenue differ from State to State that the uniformity of taxes under GST may affect their revenue sources.
He said that though a few issues needed to be sorted out, no State was opposed to the GST and he was confident that irrespective of whichever government comes to power at the Centre, the GST will be implemented in 2014.
Mr. Modi was addressing local businessmen at an interaction organised by the Goa Chamber of Commerce and Industry (GCCI) in the city on Sunday.
He was in Goa in connection with the national executive committee meeting of the BJP.
Benefit
Mr. Modi exuded confidence that the GST would free industry, trade and commerce from multiple taxation and would benefit industry, consumers and the government. “By reducing the cascading effect of multiple taxes, the GST will lead to lowering of prices in the long run and make Indian products competitive in the world market,” said Mr. Modi.
He also said that there were a few more issues like the extent of fiscal autonomy to the States, issue of threshold limits and model for inter-State trade, that needed to be sorted out and invited suggestions on these issues.
Putting in place a robust IT infrastructure will also be necessary as it will facilitate the implementation and compliance, he said.