Avtar Bhat
JAMMU, June 21: Terming Goods & Services Tax (GST) a first major step to strengthen Federal structure of India at different levels, Union Minister of State in PMO with Independent Charge of North Eastern States, Dr Jitendra Singh today said that the new legislation will give financial autonomy to States including J&K.
Talking to reporters on the sidelines of a meeting with BSNL officers here today to discuss the arrangements for Machail yatra in Kishtwar starting from July 27, Dr Jitendra Singh took a dig at those leaders, who are making allegations that the GST will affect the so called autonomy of the State and asserted that the GST is major step of Narendra Modi Government to grant fiscal autonomy not only to J&K but all States of the country.
“This is for the first time in the history of independent India that Prime Minister has shown courage to take major decision not only to strengthen federalism but also introduce cooperative Federalism in 70 years of independence”, he added.
He said the most evident example of this is that every decision taken by GST Council regarding tax structure in the states is taken by its 3/4th majority out of which 2/3rd representation has to be from the States and only 1/4th from the Centre.
Dr Jitendra Singh said GST Council comprised of Union Finance Minister and Finance Ministers of all States of the country.
He said the GST will also bring ease of business by reducing bribery and corruption and eliminate unending traffic jams at toll and tax posts all over the country.
While strongly advocating for implementation of unifying tax law all over the country, he said GST will immensely benefit the J&K State as well as other peripheral States of North East and they will get a special opportunity of equitable economic growth along other States of the country.
The other advantage of implementation of GST for these States is that the upper limit of the tax exemption fixed at Rs 10 lakh for J&K and other 10 States including eight States of NE will be increased to Rs 20 lakh for J&K. He said the upper limit of tax for other States except eleven States including eight States of NE, J&K and Uttarakhand was fixed at 10 lakh. However in case of J&K suggestions have been given to increase the exemption limit up to Rs 20 lakh, which is also under active consideration of Centre, he added.
The Union Minister said in such a case most of the small and medium level traders in the State will get benefit of exemption and they will not have to pay tax at all.
Dr Jitendra Singh, while elaborating said many of products coming from outside including house hold items like tooth powder, tooth paste etc, cereal items like pulses etc, dairy products like milk, curd etc, cooking items like mustard oil, coconut oil etc and many more in fact will have a lower tax rate after implementation of GST compared to their present tax rate. This may enable the local consumers to procure several essential medicines at a comparatively lesser price than before, he added.
Dr Jitendra Singh said certain essential medicines including Insulin and medicinal products like glasses etc will also become cheaper.
The Union Minister said, on the other hand, it is important to understand the disadvantages if GST is rolled out in entire India except J&K because in that case both traders and consumers have to pay double tax.
Earlier, Dr Jitendra Singh reviewed the functioning of BSNL viz a viz arrangements for Machail Mata Yatra in Kishtwar in a meeting with officers at North Block Bahu Plaza here. He gave directives to authorities to make the transmitters functional by July 15 so that the yatris do not face any problem. The annual Machail Mata yatra is starting from July 27.
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