“In the current year, CST collections would further decline if the Central
Government does not decide to either restore CST compensation or roll back the
rate of CST from two per cent to at least four per cent”, Mrs Chaudhary
She pointed out that Haryana had suffered a revenue loss of more than Rs 3,000
crore in 2011-12 alone on account of reduction in CST rate, and VAT collections
getting lowered. “A loss of more than Rs 3,000 crore for a state having a total
tax collection of about Rs 20,000 crore, is substantial and had resulted in
revenue deficit budget”, she said.
On the issue of rolling out of GST, Mrs Chaudhary said GST was a big tax reform
and in a federal economy, it would take some time before a consensus could be
built. But implementation of the Direct Tax Code which belongs to one department
of the Union Government is getting delayed because of various operational
Introduction of GST involved more than one department of the Central Government,
and all state governments of the country. “When I say so, neither I want to
disparage the efforts of the Income Tax Department nor do I want to sound
pessimistic about the introduction of GST, but I just want everybody to
appreciate the difficulties involved in the process,” Mrs Chaudhary said.
Haryana, on its part, has always unequivocally supported the introduction of GST
and today finds itself in a situation where the delay in its implementation is
resulting in a huge revenue loss to the state. The Central Government should
review its stand on the issue.
Mrs Chaudhary said that the Empowered Committee had, at its last meeting,
resolved that taxation of services on the basis of a negative list was a better
idea as compared to a big fat list of positive services which were to be taxed.
The Central Government has already moved ahead in this direction after
introduction of the Finance Bill, 2012-13 in Parliament.
“I had suggested at the last meeting that a window of dialogue between
Government of India and a sub group of the Empowered Committee may be started at
the earliest so that the contentious issues arising out of the definition of
services and goods can be resolved. On this note, I would request all the
Empowered Committee members to resolve for creation of such a committee
comprising officers from CBEC and sub group of officers from the Empowered
Committee”, she said.
Referring to the issue of terms and conditions for extension of the contracts of
the service provider and consultant for TINXSYS, she said that Haryana had
agreed for finalization of the terms and conditions as decided at last meeting.
She hoped that concerns of states over strategic control of the GSTN-SPV and GST
network in which the Central Government would hold 49 per cent equity, would be
addressed and steps taken in the direction of setting it up.
Punjab Newsline, India, dated