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Prime Minister Narendra Modi on Sunday ruled out a single rate of GST claiming that a luxury car and milk could not be taxed at the same rate. Accepting congressional demand for a uniform rate of 18% would lead to soaring prices for food and other essential items, he said.
Responding to Mr. Modi's remarks, former Finance Minister P. Chidambaram could be exempted from tax. "Have multiple rates, but do not call it GST … The global GST rate is a rate. You can not say, "I am introducing the GST with multiple rates." Call it by another name; call it the RSS tax, "he said.
In an interview with the magazine Swarajya posted on his website, Mr. Modi stated that the GST had, in the year from its launch, led to a jump of more than 70% of the base of indirect taxpayers, demolished check posts and merge 17 taxes and 23 credits into one tax.
"It would have been very simple to have only one slab, but that would have meant we could not have food at a tax rate of 0%. Can we have milk and Mercedes at the same pace? … So when our congressional friends say that they will only have one GST rate, they actually say that they will tax food products and products that are currently at zero or 5% to 18%, "he said. On criticism of the implementation, Modi said the new tax regime was a mbadive change, requiring a complete reset of one of the largest economic systems in the world.
Even though Congress claimed the idea of the GST, Mr. Chidambaram criticized the implementation of the regime and demanded that petroleum products and electricity, which constituted "50% of GDP," be incorporated into the tax system
Exempt essentials
Asked about the government's logic that food and luxury Mr. Chidambaram said that food, milk and other essential products could be exempted GST. Petroleum products and electricity, which constituted "50% of GDP", should be subject to the GST regime.
Job Losses
"In the absence of the government in the application of the GST, Mr. Chidambaram said that the Minister of Tamil Nadu's industry had declared to the"
job losses. State badembly that 50,000 units had been closed in 2017-18 and that five lakh jobs had been lost.Quickly on reports that GST revenues for the months of April and May were in the process of accumulating, the head of Congress said that the published figures were gross amounts, without taking into account the inputs: tax credit and revenue sharing with the states.
Chidambaram demanded that rather than companies producing three returns a month in all the states in which they operated, "only one return must be filed quarterly"
BJP criticized
Attacking the BJP for blocking the GST In the Opposition, Mr. Chidambaram said: "We We are also relieved that the BJP, which vehemently opposed the idea for five years, has changed its wrong view and adopted the idea of the GST. "
Fortunately – this government did great things in great [demonetisation] or big things in bad condition [GST] ", he adds
( With entries PTI )
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