New Delhi, October 7, 2017
28 per cent tax slab is bound to get "gradually reduced" in coming days
The Centre has promised that all glitches around goods and services tax (GST) implementation would get sorted out over the next nine months and a win-win situation would emerge for all stakeholders.
Inaugurating a National Conclave on GST, organised by PHD Chamber of Commerce and Industry (PHDCCI), Shiv Pratap Shukla, Minister of State for Finance, urged India Inc not to measure the execution of GST in its first phase of three months as it was a big tax reform and needed “minimum one year” for its perfect implementation.
This assurance came at a time when the GST implementation — which started on July 1 — was bogged down by challenges such as technology snags and frequent rate changes by the GST Council.
Shukla also indicated that the higher GST tax slab of 28 per cent is bound to be gradually reduced as the GST council would evolve alternative mechanism and the next GST Council meeting at Guwahati on November 9-10 would see results on this front.
He also highlighted that GST Council has been quite sensitive to the demands of stakeholders and had in recent months reduced GST rates on over 100 items.
“The GST Council has already taken pro-active measures in rationalising GST rates in recent past and the trend would continue in future wherever the tax rate is deemed to be slightly on the higher side. The 28 percent GST tax slab would fall as per genuine and legitimate aspiration of the people in general and industry in particular”, Shukla said.
Haryana’s Finance Minister Abhimanyu urged the cynics to refrain from looking at GST implementation with negativity, stating that it was only three months since its launch and that Government needed more time for course corrections.
PHDCCI President Gopal Jiwarajka highlighted that three months have passed since the implementation of GST and there have been mixed impact on various sectors of the economy.
He also called for a “surgical strike” on the anomalies that prevailed in GST.
[The Hindu Business Line]