Haryana Finance Minister, Capt Abhimanyu on Friday said that while implementing GST, interests of small dealers and traders must be taken care of and special steps should be taken for them. Capt. Abhimanyu while speaking at the meeting of Empowered Committee of State Finance Ministers organised at Thiruvananthapuram, Kerala said that the small dealers and traders are very important link in the chain of tax collection regime and some special schemes should be planned for their welfare and security.

The Finance Minister said that Haryana collects revenue to the tune of around Rs1,000 crore per annum on account of levy of purchase tax/VAT on food-grain. However, under the GST regime, it has been proposed that food-grain shall be exempted from the levy of GST. This significant loss of revenue for Haryana due to subsumation of VAT on food-grain would be both continuous and permanent in nature and hence the compensatory mechanism for 5 years would be inadequate, he added.

Considering the nature of losses and the likely permanent impact on the revenue of the food-grain producing States, Haryana Government has already proposed to the Union Finance Ministry that a new entry may be included in the list II-state list in the 7th Schedule to the Constitution of India which would provide taxation powers to these States. During the meeting, he also raised the issue of pending CST compensation for 2010-11, 2011-12 and 2012-13 amounting to Rs 5,008.70 crore. Capt. Abhimanyu urged the Centre to make it mandatory for them to compensate the states for the losses in the GST regime and also urged to increase the compensation period from five years to ten years being permanent losses to the manufacturing and surplus producing States.

He said that as the GST has not been implemented so far, hence the position needs to be reviewed for the payment of full CST compensation for the years 2013-14 and 2014-15. Neither the Centre has raised the rate of CST from 2 per cent to 4 per cent nor it has decided regarding the payment of CST compensation for 2013-14 and onwards till the GST is rolled out.

Source: http://www.dailypioneer.com/state-editions/chandigarh/gst-should-take-care-of-small-dealers-traders.html

Leave a Reply

Your email address will not be published.

Solve this and then Post Comment *

scroll to top