Will raise concerns of traders on GST: Dy CM

Delhi finance minister Manish Sisodia said on Tuesday that he would raise concerns of city traders and manufacturers about the tax slabs for different items under the upcoming goods and services tax (GST) regime in the next meeting of the GST Council.

The GST, being considered as the biggest tax reform in the country since independence to unify the Indian market with a uniform indirect tax system, is set to be rolled out on July 1. The GST council will meet on June 3 for fixing tax slabs of a few items.

“I have repeated time and again that implementation of GST is good for the country but there are flaws in the implementation procedure such as fitment of the tax slabs. The city traders have brought it into my notice that many items have been kept in higher tax slabs, which in turn would affect both traders and the consumers,” Sisodia said after a meeting with representatives of about three dozen market and industry associations.

“The lower the tax rate, higher is the compliance and revenue generation and vice versa. This principle has been proved true in Delhi as the government’s revenue has increased despite the tax rates been reduced by our government on several items over the past two financial years,” he added.

Sisodia named tax slabs for items such as optical products, wheat flour, marble, auto and spare parts, dry fruits, bathroom fittings, steel utensils, broom besides the hotel industry sector in the city as irrational, which will also affect the small scale industry, and in turn hit the Centre’s Make In India campaign.

“For example auto and tractor spare parts have been put under 28% slab. It will lead to tax evasion as well as black marketing. The consumers themselves will start demanding goods without bills,” said Brijesh Goyal, convener (AAP trade wing).

Meanwhile, a special session of the Delhi assembly convened on Tuesday during which the State Goods and Services Tax Bill will be passed. HTC