India : Jaitley willing to accept Congress' demand on GST

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Jaitley willing to accept Congress' demand on GST

17
Dec '15

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Finance Minister Arun Jaitley has hinted at accepting Congress' stand on scrapping of one per cent additional tax but ruled out their demand for incorporating the GST rate in the Constitution Bill.

Congress has been opposing passage of the GST Bill over its demand for a simple Goods and Services Tax (GST) regime where states do not have powers to levy additional tax over an 18 per cent tax rate that forms part of the Constitutional Amendment Bill.

At an industry meet on GST, Jaitley said the one per cent additional tax on inter-state sales was proposed as manufacturing states like Gujarat and Tamil Nadu were of the opinion that they, having spent money on putting up infrastructure, would lose on revenue as GST is more of a destination tax.

“I am ready to go back to those manufacturing states and tell them that we have guaranteed you to make good for all the loss suffered in the first five years. So this one per cent additional levy issue is resolvable,” he said.

The one per cent additional tax was proposed to make up for the loss of Central Sales Tax (CST) which will no longer be available in the new regime.

On the Congress' demand that the 18 per cent tax be put in the Constitution Bill, he said tariffs can never be cast in stone. Also, if there is the need to raise tariffs to combat natural calamities, the Constitution will need another amendment.

Jaitley said sooner or later the GST Bill will have to be passed. (SH)

Fibre2Fashion News Desk – India

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