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LS-GST


PTI Last Updated at 09 Aug 2018, 19:08 IST India

The Lok Sabha today passed four

bills to amend the GST law, as Finance Minister Piyush Goyal

said lower tax rates will improve compliance and enhance

revenue collection.

Replying to a debate on Good and Services Tax (Amendment)

Bill 2018, he said tax collection will not come down despite

reduction in taxes as he allayed the concerns to that effect

raised by some members.

The lower rates will rather improve compliance and

enhance revenue collection, he added.

The four bills, which were passed together by a voice

vote, are the Central GST (Amendment) Bill, Integrated GST

(Amendment) Bill, GST (Compensation to States) Amendment Bill

and Union Territory GST (Amendment) Bill.

Goyal said in the last one year, GST on about 400 goods

and 68 services were reduced. GST came into force from July 1,

2017.

"We are empowering 125 crore people of India through Good

and Simple Tax," he said, referring to the GST.

Promotion of an honest tax structure will improve

compliance as it will encourage people to come forward and pay

taxes, he said.

On the problems faced by the textile sector, he said the

GST Council has resolved most of the problems of the sector.

With the introduction of GST, textile has become cheaper, he

added.

While moving the bill for consideration, Goyal said the

capacity to slash the GST rates on more items would go up as

GST revenues and the compliance rate increases and the economy

formalises.

He also pointed out that the government was able to

collect GST in line with the country's fiscal deficit target.

Participating in the debate, senior Congress leader

Mallikarjun Kharge said that the BJP-led government does not

know how to implement GST.

"More than 50,000 MSME industries have closed down in

Tamil Nadu alone due to faulty implementation of GST," he

stated.

Saugata Ray (TMC) said the recent cut in GST rates on 100

items was a "pre-poll" sop and the estimated loss to the

exchequer on account of this would be Rs 12,000 crore.

"The Finance Minister has to explain from where the money

will come," Ray said, while observing that Goyal was not

present in the House.

The BJP members then informed Ray that Goyal has gone to

Rajya Sabha for voting on a bill, to which Ray remarked "This

is why I say, Finance Minister should be from the Lok Sabha".

Referring to Goyal, Ray said "the caretaker Finance

Minister" has brought four amendment bills.

"Today Arun Jaitley came to vote in the Rajya Sabha. I am

wondering when the change in portfolio will happen," he said.

Kalikesh Singh Deo (BJD), while supporting the bills,

asked the government to make it easy to pay taxes under the

GST. He said the MSMEs were being stifled with high compliance

burden under GST.

"The government is doing too little and taking too much

time to do it," he said.

Anandrao Adsul (Shiv Sena) said Goyal in the later part

of his speech went on a "political tangent and then the

discussion revolved around politics. I couldn't understand if

the discussion was on GST or was it poll campaign."

However, he said that despite the fact that India's

economy was growing at a faster rate, why was the value of

rupee declining and the price of fuel increasing.

Jayadev Galla (TDP) reiterated the demand to fulfil the

commitments made by the Centre for Andhra Pradesh.

He said that the government talks about special category

states in the GST law but do not want to extend the status to

Andhra Pradesh.

"People of the state are not fools or illiterates. They

will be giving befitting reply in the election. I demand

extension of all benefits to Andhra Pradesh....How can we

support this bill," he said, while demanding that the period

of compensation should be raised from 5 to 10 years.

He also asked the Centre to remove GST on red chilly and

turmeric powder.

K V Reddy (TRS) said the law has not been able to cut tax

evasion and reduce fraud and "now there is more ambiguity".

He asked the centre not to bring petrol and alcohol

within the purview of the GST.

Rajesh Ranjan (RJD), Ravindra Kumar (BJP), Renuka Butta

(YSRCP), P S Chandumajra (SAD) also participated in the

discussion.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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