Don’t blame GST for loss in revenue collection: Agrawal

Source: The Hitavada      Date: 10 Oct 2017 10:28:00


 

Staff Reporter,

RAIPUR,

Accepting that three months after the rollout of Goods and Service Tax, Chhattisgarh is in loss so far as revenue collection is concerned, Commercial Tax Minister Amar Agrawal however added that any assessment of the new indirect tax regime, on the basis of just three months experience, will be jumping the gun.


Addressing the mediapersons during a press conference on Monday, Commercial Tax Minister Amar Agrawal said three months after the implementation of GST, Chhattisgarh has earned equal revenue which it had earned during the same period in the last financial year.


However, the loss incurred is that it didn’t receive the 14 percent growth, which the state was expecting in these three months. But the loss has been compensated by the central government as promised, said Agrawal.
Agrawal said as of now there is no question of slashing VAT rate on petrol-diesel, as already the rates are much lower in comparison to other states. He said let other states bring down the rates lower than Chhattisgarh, the state might consider to bring the rates further down.


Commenting on the Congress demanding probe against
Jay Amit Shah, son of BJP National President Amit Shah by Supreme Court sitting judges against media reports claiming that turnover of Jay Shah’s company saw an unprecedented rise after his party came to power at the Centre in 2014, Commerce Minister Amar Agrawal vehemently refuted the charges while dubbing it as false, fictitious and politically motivated.


Agrawal said such allegations have been leveled against the BJP National President’s son keeping in view the Assembly Elections in Gujarat in December with clear political motives, which is unfortunate. He further added Jay Shah has already filed a defamation suit worth Rs 100 crore and the Congress leaders engaged in mudslinging will face the same fate as faced by Delhi Chief Minister Arvind Kejriwal after leveling false and fictitious allegations against Arun Jaitley.


Commerce Minister further giving details on the outcome of 22nd GST Council meet said business with annual turnover of Rs 1.5 crore have been allowed to file quarterly returns. Also the turnover threshold for businesses to avail of the composition scheme was raised to Rs 1 crore from Rs 75 lakh.


These reforms were undertaken after considering the implementation experience of last 3 months since the roll out of GST. The GST Council has considered giving relief to small traders by reducing the compliance burden of medium and small taxpayers in GST. However, the major taxpayers who make 94-95 percent of the total taxes, will continue to file monthly returns and pay taxes monthly.


Agrawal said exporters were facing sluggish growth due to global slowdown, will get refunds for the tax paid by them on exports during July from October 10 while refunds for tax paid for August will be given by October 18.
For the remaining period the exporters will pay a nominal 0.1 percent tax on purchase from manufacturers. From April 1, the government will attempt to launch an e-wallet facility for the exporters to give them refund. The Council also decided to cut GST rates on 27 common use items.


Agrawal informed that a Group of Ministers has been constituted comprising of himself along with Bihar Deputy Chief Minister and Finance Ministers of Assam, Jammu and Kashmir and Punjab, who will look into the issue of extending the composition scheme on inter-state sales as well as rationalizing taxes on restaurants.