Vested interest kept real estate, liquor out of GST, says Sisodia
Deputy chief minister Manish Sisodia on Monday raised concerns over the real estate and liquor sectors being left out of the ambit of the upcoming goods and services tax regime. He expressed apprehension it was done as ‘politicians and influential people’ had ‘business interests’ in these sectors.
Addressing MLAs at an orientation on the GST in Delhi Assembly, chief economic advisor of the government of India, Arvind Subramanian, agreed ‘in-principle’ on bringing liquor and land under the goods and service tax (GST) and that all states should come together to change it.
“Liquor and real estate lobbies have succeeded in intervening in GST. Without any hesitation, I can say these two sectors have been kept out because political leadership and influential people are conventionally indulged in real estate,” Sisodia said.
He said many political leaders allegedly “invest their black money” in real estate business.
“We are the only one country in the world that has kept the land and liquor out of the GST ambit. Even a child knows black money is invested in the real estate sector. I wrote to all finance ministers on this issue but my opinion was actually rejected in the GST council meeting,” he added.
The issue was first raised by speaker Ram Niwas Goel during the question and answer session.
The chief economic advisor supported the views of Goel, who expressed apprehension of “conspiracy” by keeping liquor and real estate sectors out of GST and said it will only lead to huge corruption in the country.
“There has been some improvement in the real estate sector...you (states) have the power to change it. All states should come together. The power is with you, but I completely agree on the issue in-principle,” Subramanian said.
Sisodia said Delhi will benefit a lot due to the GST, which is expected to be implemented from July 1. Subramanian said Delhi’s revenue will be increased as it is a services-dominated state.
A senior government official said that as per a rough estimate, there will be an increase of ₹5,000 crore in tax collection by the city administration once the new tax regime is in place.