Kolkata, April 27 (IANS) Sushil Kumar Modi, chairman of the empowered committee of state finance ministers on implementing the goods and services tax (GST), Saturday called for an “independent mechanism” to decide the compensation for losses that states would incur after the new indirect tax regime is enforced.
“The independent mechanism should decide the compensation for states after implementation of GST. Through that mechanism, the losses of states should be determined,” Modi told mediapersons on the sidelines of an event organised by Bharat Chamber of Commerce here Saturday.
Various state governments have raised concerns about revenue losses once the GST regime — that seeks to bring uniformity in the indirect tax structure and make India a single market — is rolled out.
Modi, also the deputy chief minister of Bihar, said the empowered committee of GST was currently sending letters to national industry bodies including FICCI and ASSOCHAM, seeking their feedbacks and suggestions on issues like entry tax and dual control.
He said once the GST comes up, it will give India a competitive edge in the international markets.
“If we want to compete with China in the international market, we would have to bring GST,” Modi said.