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.
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Comments:
C Balasubramanian
May 1, 2013 at 2:11 PM
C Balasubramanian
April 30, 2013 at 11:18 AMLoss of revenue was feared by States while introduction of VAT .Contrary to that all the States revenues rose to an average of around 20% with a few exceptions.
Hence the Trade & Industry must pressrise thier respective State Governments for their support for early implementation of GST
The fear of State Governments about loss of revenue on implementation of GST is not at all acceptable . The same type of apprehensions were put forth by States on implementation of VAT .But the States had 20% more revenue on an average from VAT .Hence the need of the hour is the States co-operation to the Centre for implementation of GST