Time for consensus Service tax woes ahead
With reference to the editorial, “The next challenge” (July 21), it seems the Congress is getting isolated in its opposition to the Goods and Services Tax (GST) Bill, as even the Janata Dal-United (JD-U) and the Trinamool Congress (TMC) have been won over by the Bharatiya Janata Party (BJP)-led government at the Centre.
The JD-U and the TMC have realised that it is in their interest to support the GST Bill as it is expected to bring unprecedented benefits to both Bihar and West Bengal. This is the time for the BJP and other parties to discuss the Bill in detail, as the editorial rightly suggests. This way glitches would be avoided and benefits would be equal for all states when the Bill becomes a law.
If implemented in earnest, GST has the potential to transform the economic landscape of the country. The dream of a single market can be realised in the next financial year only if there is a robust technological platform in place. For this, the government will have to start work on a war footing.
The biggest challenge is expected from states where the BJP is not in power. This makes it more necessary for chief ministers of West Bengal, Bihar and Tamil Nadu — Mamata Banerjee, Nitish Kumar and J Jayalalithaa respectively — to be on the same page with the central government.
The Congress has been asking for a cap on the GST revenue neutral rate. As it has taken years to reach this stage where the GST seems possible, it is better that all issues regarding it are discussed threadbare and resolved with the participation of all stakeholders.
Bal Govind Noida security arrangements in Parliament on social media may have far-reaching effects.
Due to Mann’s thoughtless act, Rajya Sabha was adjourned and Lok Sabha proceedings were also halted, hampering scheduled business in both the Houses.
Perhaps, the biggest loser was the government’s effort to build consensus with the Congress on the Goods and Services Tax Constitution Amendment Bill.
It is unfortunate that the AAP is accusing the Bharatiya Janata Party of using the Mann issue to deflect the matter of attacks on Dalits in Gujarat. Why does the AAP try to find fault with others and project itself as a victim of circumstances?
S Kumar New Delhi While several issues connected with the introduction of the goods and services tax legislation have been widely commented on, the likely effects of bringing the service sector within the jurisdiction of states has not got the desired attention.
Since its modest inception in 1994, the ambit of service tax has widened, thus contributing substantial revenue. In mid-2012, there was a departure: All services, except those on the negative list came under the tax net; at the same time those with an annual turnover of up to ~10 lakh were exempted. The term “service” was also well defined.
Over time, aided by several judicial pronouncements, central excise authorities have acquired the knowledge and experience required to administering this complex tax. Procedures for service providers spread over several states have also been streamlined in the form of centralised registration and filing of returns.
Entrusting this sector overnight to states, which have no previous experience in this regard, is fraught with not only risk to revenue but is also bound to be a constant source of irritation and harassment to service providers. The clamour of states to have full jurisdiction over units with an annual turnover of up to ~1.5 crore, over and above concurrent jurisdiction, is absurd and should be rejected outright in the interest of a smooth transition to GST.
S K Choudhury Bengaluru