Jammu: Taking a dig at those opposing GST on the plea that it will affect autonomy of the state, Union Minister Jitendra Singh Thursday said the tax reform is a major step of Narendra Modi government to grant fiscal autonomy not only to J&K but all states of the country.
“The GST is major step of Narendra Modi government to grant fiscal autonomy not only to J&K but all states of the country,” Singh told reporters here.
Terming Goods and Services Tax (GST) as the first major step to strengthen the federal structure of India at different levels, Singh said “the new legislation will give financial autonomy to states including J&K”.
The Union Minister of State for Development of North- Eastern Region termed GST as a landmark in the history of India. “This is for the first time in the history of independent India that Prime Minister has shown courage to take major decision not only to strengthen federalism but also introduce cooperative federalism in 70 years of independence”.
Singh maintained that it is a majority decision by states and the most evident example of this is that every decision taken by GST Council regarding tax structure in the states is taken by a 3/4th majority out of which 2/3rd representation has to be from the atates and only 1/4th from the Centre.
GST will also bring ease of doing business by reducing bribery and corruption and eliminate unending traffic jams at toll and tax posts all over the country, he said.
Singh strongly advocated implementation of unifying tax law all over the country, and said GST will immensely benefit J&K as well as other peripheral states of North East as they will get a special opportunity of equitable economic growth along with other states.
The other advantage of implementation of GST for these States is that the upper limit of the tax exemption fixed at Rs 10 lakh for J&K and other 10 states including eight of NE will be increased to Rs 20 lakh for J&K.
He said the upper limit of tax for other states except 11 states including eight of NE, J&K and Uttarakhand was fixed at 10 lakh. However, in case of J&K, suggestions have been given to increase the exemption limit up to Rs 20 lakh, which is also under active consideration of Centre, he added.
The Union Minister said in such a case most of the small and medium level traders in the state will get benefit of exemption and they will not have to pay tax at all.
Singh, while elaborating, said many products coming from outside including household items like tooth powder, toothpaste, cereal items like pulses, dairy products like milk, curd etc, cooking items like mustard oil, coconut oil etc and many more in fact will have a lower tax rate after implementation of GST compared to their present tax rate.
This may enable the local consumers to procure several essential medicines at a comparatively lesser price than before, he added.
The Minister said, it is important to understand the disadvantages if GST is rolled out in entire India except J&K because in that case, both traders and consumers have to pay double tax.
Follow this link to join our WhatsApp group: Join Now
Be Part of Quality Journalism |
Quality journalism takes a lot of time, money and hard work to produce and despite all the hardships we still do it. Our reporters and editors are working overtime in Kashmir and beyond to cover what you care about, break big stories, and expose injustices that can change lives. Today more people are reading Kashmir Observer than ever, but only a handful are paying while advertising revenues are falling fast. |
| ACT NOW |
| MONTHLY | Rs 100 |  |
| YEARLY | Rs 1000 | |
| LIFETIME | Rs 10000 | |
