GST on petroleum products only after revenue stabilises: Sushil Modi
Kolkata, Aug 2: Bihar Deputy Chief Minister and GST Council's member Sushil Modi on Thursday said the Council can think of bringing the petroleum products under the new tax regime only after the monthly revenue target of Rs 1 lakh crore is achieved.
He said there could be a "shortfall in revenue" in initial months as indirect tax rates on items are being lowered, but the revenue would increase in the long run due to more compliance.
Modi said the new indirect tax structure would be a "complete GST" only after petroleum products, stamp and electricity duty are included.
He also said the way the GST is being "implemented successfully", "no states would be required any compensation after three years".
"When you reduce the tax rates, there may be a shortfall in revenue for the next 3-4 months and sales remain comparatively lower during the monsoon season. But, in the long run, the revenue will gain because lowering the rates will lead to more compliance and people have a tendency to pay taxes when it is low. There will be better revenues as tax rates for more than 450 items were brought down," he said.
In a relief for common man, the GST Council in its last meeting reduced tax rates on over 50 items including refrigerators, washing machines and small televisions, which would now be taxed at 18 per cent, down from the current 28 per cent.
"Our target is to get Rs 1 lakh crore per month," he said on the sidelines of an event organised by the Indirect Tax Committee of the Institute of Chartered Accountants of India.
Modi said there is "no guarantee" that the prices of petroleum products would come down if they are brought in the GST ambit.
"No states would like to reduce revenue as they are earning 40 per cent of their revenue from petroleum products. Even if these products are brought under GST, the states will also be allowed to levy taxes over and above the GST rate as these are considered as sin goods," he said.
Elaborating further, he said: "Let the revenue stabilise. When we achieve the Rs 1 lakh crore (monthly) target, then only the GST Council can think of bringing petroleum products under GST. I do not see inclusion of these products in the tax regime in near future and it will take longer time, but ultimately, stamp duty, electricity duty and petroleum products have to come in GST."
He also indicated that the GST Council's efforts would continue to bring more items, except some sin and luxury goods, from the 28 per cent slab and there is a possibility to create a new slab between 12 per cent and 18 per cent depending on the stabilisation of revenue.
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Cong cites Kangana's purported remarks to accuse BJP of wanting to bring back repealed farm laws
New Delhi, Sep 24: The Congress on Tuesday cited BJP MP Kangana Ranaut's purported remarks on farm laws to allege that the ruling party was making efforts to bring back the three laws that were repealed in 2021, and asserted that Haryana will give a befitting reply to it.
The Congress shared on X an undated video of Ranaut in which she is purportedly saying in Hindi, "Farm laws that have been repealed should be brought back. I think this may get controversial. The laws in farmers' interest be brought back. Farmers should themselves demand this (to bring farm laws back) so that there is no hindrance to their prosperity.
"Farmers are a pillar of strength in India's progress. Only in some states, they had objected to farm laws. I appeal with folded hands that farm laws should be brought back in the interest of farmers."
In a post in Hindi along with the video, the Congress said, "The three black laws imposed on farmers should be brought back: BJP MP Kangana Ranaut has said this. More than 750 farmers of the country were martyred, only then did the Modi government wake up and these black laws were withdrawn."
Now BJP MPs are planning to bring back these laws, the Congress alleged.
"The Congress is with the farmers. These black laws will never return, no matter how hard Narendra Modi and his MPs try," the opposition party said on X.
Congress spokesperson Supriya Shrinate also shared the video of Ranaut on X and said, "'All three farm laws should be brought back': BJP MP Kangana Ranaut. More than 750 farmers were martyred while protesting against the three black farmer laws. Efforts are being made to bring them back."
"We will never let that happen. Haryana will answer first," she said in an apparent reference to the assembly polls in Haryana.
Congress' media and publicity department head Pawan Khera also shared the video on X and said it was the BJP's "real thinking".
"How many times will you deceive the farmers, you two-faced people?" Khera said in a post in Hindi.
The three laws -- Farmer's Produce Trade and Commerce (Promotion and Facilitation) Act; The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Act; and The Essential Commodities (Amendment) Act -- were repealed in November 2021.
The farmers' protest started at the fag-end of November 2020 and ended after Parliament repealed the three laws. The legislations came into force in June 2020 and were repealed in November 2021.
“तीनों किसान क़ानून वापस लाये जाने चाहिए” : BJP MP कंगना रनौत
— Supriya Shrinate (@SupriyaShrinate) September 24, 2024
जिन तीन काले किसान विरोधी क़ानूनों की मुख़ालिफ़त करते 750 से ज़्यादा किसान शहीद हो गए
उनको दोबारा से लाने की कोशिश की जा रही है. हम ऐसा कभी नहीं होने देंगे
सबसे पहला जवाब हरियाणा देगा pic.twitter.com/kRAkRuE2cc
