De­cen­tralise GST im­ple­men­ta­tion: Jalan

The Hindu Business Line - - NEWS -

For­mer RBI Gover­nor Bi­mal Jalan has sug­gested that the im­ple­men­ta­tion of GST should be de­cen­tralised as pri­or­i­ties of the rich and the poor States are dif­fer­ent.

De­scrib­ing the Goods and Ser­vices Tax (GST), rolled out na­tion­wide on July 1, as an ex­tremely im­por­tant step that the gov­ern­ment has taken, Jalan said proper im­ple­men­ta­tion of the new in­di­rect tax regime would take some more time.

“Pri­or­i­ties of rich States like Ma­ha­rash­tra and poor States Bi­har are go­ing to be dif­fer­ent... There are dif­fer­ent par­ties in States and the Cen­tre, so we have to de­cen­tralise the im­ple­men­ta­tion of GST,” Jalan told PTI. States’ rev­enues will dif­fer, he noted, if one is pro­duc­ing high tax prod­ucts and another pro­duc­ing low tax prod­ucts.

Rev­enue Sec­re­tary Has­mukh Ad­hia had also said re­cently that GST which amal­ga­mates more than a dozen Cen­tral and State levies like ex­cise duty, ser­vice tax and VAT, will take about a year to sta­bilise.

Nearly four months since its in­tro­duc­tion, the new in­di­rect tax regime has seen teething trou­bles and com­pli­ance is­sues, which the GST Coun­cil — the high­est de­ci­sion-mak­ing body of the new regime — is ad­dress­ing through sev­eral rounds of changes.

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