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| Edited By: Sanjay Jog |Source: DNA |Updated: Jun 29, 2018, 02:50 AM IST
Senior member of GST Council and former chairman of empowered committee of state finance ministers Sushil Kumar Modi says inclusion of petroleum products in the GST and rationalisation of GST rates are expected once the revenue flow stabilises. In an exclusive interview with Sanjay Jog, Modi, who is also Bihar's deputy chief minister, share his views on the GST regime.
Achievement is more than our expectations in a country like India where there are 29 states and five union territories. Introduction of one nation one tax after a Constitutional amendment was a major task, especially when each states were having their own form of value-added tax (VAT). What Congress-led UPA could not do it, it was possible in the BJP-led NDA rule.
It has worked wonderfully though it failed in Malaysia and other countries. However, in a divergent country like India with states ruled by different parties, a major tax reform in the form of GST was carried out successfully.
Prime Minister Narendra Modi and finance minister Arun Jaitley could persuade states and take them into confidence that the revenue will be protected and it was put in the constitutional amendment bill.
Each and everything is online including registration, payment of returns and audit. It was a difficult task but was achieved by the GST Council.
I must say that there are not many complaints relating to IT. Teething problems are over. People are now used to GST.
Problems were resolved at the level of GST Council. I must mention here that not a single decision was taken by dissent or by voting. Whatever statements made outside by the state finance ministers, every decision was passed unanimously in the GST Council.
Two big issues will be taken up in the coming days. Number one is to stabilise the buoyancy of the tax revenue. We want Rs 1 lakh crore to be collected per month in the current fiscal. Last year it was Rs 11 lakh crore. Further, adequate attention will be paid on further strengthening the E-way bill to plug tax evasion.
Another issue is simplification of returns. Already the committee headed by me has cleared the format of returns and it has been finalised by the group of ministers. Besides, the law committee has also given its nod. Now it will be put in the public domain for wider consultation and after six months new format of return will be launched. It will be more and more simplified in its nature and easy to verify the purchase and sale by dealers.
Therefore, the main focus in on finalising the new format of returns. This will help to achieve the target of monthly tax collection of Rs 1 lakh crore.
We do not want raids as the department officials are going to premises. The GST Council believes that tax evasion will be curbed ones new format of filing returns is launched and implementation of e- way bill gathers momentum. In addition to this, there is data analytics and data mining.
It is true, rationalisation of remaining items which are in the 28% slab is under GST Council's consideration. However, unless the revenue is stablilised, new format of return is launched, e-way bill is strengthened, no major decision with regard to the rationalisation of items in different slabs is possible.
States are not yet ready to give their consent as revenue is a big issue. Only after the stabilisation of revenue, GST Council can think about bringing petroleum products under GST.
I must reiterate that the decision on inclusion of petroleum products in GST will be taken after due consultations. Already, petroleum products are part of the Constitutional amendment and there is no need for another amendment which otherwise is a big exercise. PM Modi and finance minister Arun Jaitley were able to convince the states to put petroleum products in the GST.
I must clarify here that earlier during UPA rule when the GST bill introduced by P Chidambaram as finance minister did not include petroleum products. Chidambaram could not succeed in the passage the bill and couldn't take states on board.
