Social media used to disrupt GST adoption: Govt officials
NEW DELHI: The Goods and Services Tax (GST) has largely seen a smooth adoption across sectors since its launch but according to government officials, people with ‘vested interests’ are using social media to manufacture dissent against the new tax regime.
GST kicked-in on July 1 and has led to discontent among some sector-specific traders . But government officer-bearers said that this ‘discontent’ was created to fulfill ulterior motives.
“There are several sectors where social media campaigns have been created by people with vested interests to create dissent against GST,” said a top government functionary.
Since the announcement of the four-tiered GST rates, various groups have been vocal on social media against its certain aspects, like the 5% tax on assistive devices for the physically challenged.
Last month, Congress vicepresident Rahul Gandhi had targeted the Modi government on the issue and tweeted: “GST on disability aids like wheelchairs and Braille typewriters once again shows this government’s complete insensitivity towards our most vulnerable. Congress Party demands a full rollback of this ‘disability tax’ that will put millions of our disabled people through further hardship.”
But the government functionary defended the move, stating: “Since the final consumer tax is lower than the tax on inputs, a manufacturer can claim refund. If these devices were taxed at 0% then there would be no tax credits making them more expensive”.
While devices for the disabled are taxed at 5%, inputs and raw materials used to manufacture them attract 18% levy, allowing manufacturers to seek tax credit for inputs.
“These outrages are manufactured with vested interests and are easy to spread as most people don’t bother to understand logic of taxing a product,” said a government source. He added that this was being done to mislead citizens.
A 12% tax on sanitary napkins under GST had also created outrage on social media with activists and political parties condemning the government for ‘neglecting’ the needs of women.
But finance ministry officials explained that the GST rate of 12% was a shade lower than 13.7% charged on sanitary napkins in the previous indirect tax regime.
“This (online outrage) was a campaign engineered by Chinese companies,” said a government source and added that imports from China account for a quarter of the sanitary napkin market and without GST and its input credits, local makers would lose out to foreign imports.
Much like the anti-GST campaign on sanitary napkins, government sources said the drive against GST on hybrid cars was also created by foreign players.