GST is destination consumption based tax: Goyal

Source: The Hitavada      Date: 13 Jul 2017 11:59:54


 

Business Bureau,

For a country to develop, only hard work is not sufficient but fast acceptance of technology and changes is key factor, said Piyush Goyal, Minister of State with Independent Charge for Power, Coal, New and Renewable Energy and Mines. He was speaking at a GST programme organised by Confederation of All India Traders for textile sector at New Delhi. He said, “The argument that we were not in tax net for last 70 years hence should not be included in GST will not hold good. If tax is removed from one sector its burden has to be borne by another. For keeping over all tax rate at lower levels it has to be equitably distributed.”


By taxing at each stage in chain of movement of goods from production to consumption, Government gets all the details and statistics. This helps Government in framing better policies for citizens.
The decisions regarding GST law and rules has been taken in GST Council by consensus wherein representatives of all parties were present.


“GST is destination consumption based tax. Full chain end to end has to be taxed,” he noted.
The representatives of textile sector said that they do not oppose GST but they want some time for its adoption. Traders said that there are multiple rates of taxes in whole process of
making fabrics.


It should be single rate for all components and services involved in making fabrics.
Large textile units will take full input tax credit while small
manufacturers material will become costly.
Traders from different cities and states like Maharashtra, Gujarat, Rajasthan, Uttar Pradesh, Delhi etc., were present.
B C Bhartia, National President of CAIT welcomed the guests and Praveen Khandelwal, Secretary General of CAIT conducted the proceedings.