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Aug 23, 2019-Friday



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Friday, Aug 23, 2019

Centre urges Congress to rethink stand on GST launch, Nitish too will skip event

The GST in its present format is “unacceptable” to the Congress as it will “ruin” small businesses and create “unemployment”, senior party leader Ajay Maken has said.

india Updated: Jul 01, 2017 17:28 IST
New Delhi
Textile traders shout slogans as they take part in a bike rally to protest against GST in Hyderabad on Thursday.
Textile traders shout slogans as they take part in a bike rally to protest against GST in Hyderabad on Thursday. (PTI)

Union minister M Venkaiah Naidu said on Friday it was unfortunate that the Congress was distancing itself from the GST launch event, hoping the opposition party will rethink their stand.

Prime Minister Narendra Modi will unveil the new tax regime at midnight, replacing a messy mix of more than a dozen state and central levies that will unify the country’s $2 trillion economy and weave 1.3 billion people into a common market.

Opposition parties TMC, Congress and Left see undue haste in the implementation of the goods and services tax, causing hardships for millions of tiny neighbourhood shops that don’t even use a calculator. They have decided to boycott the gala event.

GST: What will you pay?
Set to be launched on July 1, this is how GST will impact basic expenses
Tax burden goes up
Current effective tax rate includes central excise duty, VAT and all various local levies.
* This is the cess that will be applicable on cars
Tax burden comes down
Source: EY, GST Council | Caveat: These are for illustration purposes only. Not meant for direct implementation or reliance. These rates are based on best of our understanding of the applicable rates and should not be taken as an assurance of the ultimate rates. The rates are based on submission as of the June 20, 2017
Nil GST rates: Meat, other than frozen and in unit containers Fish, fresh or chilled Dairy products Eggs, salt Human blood and components Contraceptives Fresh fruits and vegetables Non-branded cereals and flour, jaggery Non-branded organic manure Judicial, non-judicial stamp papers; inland, post cards Non-precious metal bangles and agricultural hand tools

The Janata Dal-United (JD-U) will send a representative to the Parliament event. Earlier, Bihar CM Nistish Kumar was expected to attend. Lalu Prasad’s Rashtriya Janata Dal (RJD) -- like the Congress -- will not be present.

“It’s really unfortunate because they are distancing themselves from the process of reformation in the country. I hope they (Congress) realise by evening and re-think and join us in the Central Hall,” Naidu told at a programme organised by a TV channel.

“I still appeal to the Congress and other parties boycotting GST event to reconsider. It’s not a party function,” he added.

The government promises that the transition to a single, nationwide tax on goods and services will streamline business and boost the economy by tearing down barriers between 31 states and union territories. It is estimated to add 0.4% to 2% to GDP growth.

But some businesses are still figuring out how it will work as they race against time to adopt or upgrade cash registers and computer system so they are able to file monthly tax returns that comply with the new tax regime.

For some businesses, the GST is complex with four broad tax categories of 5, 12, 18 and 24%, and myriad exceptions, as opposed to a simpler, flatter and broader sales taxes in other countries.

First Published: Jun 30, 2017 12:06 IST

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