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Centre did not play big brother role in fixing GST rates: Govt

Nirmala Sitharaman made this remark referring to the agitation by Tamil Nadu film industry

Press Trust of India  |  Amaravati 

Union Minister of State for Commerce and Industry Nirmala Sitharaman
Union Minister of State for Commerce and Industry Nirmala Sitharaman

Maintaining that the Centre was not playing big brother role, Union Minister on Saturday suggested that any state could forego its share of goods and services tax (GST) if it wanted to lessen the tax burden.

Sitharaman, Minister of State for Commerce and Industry, made this remark referring to the agitation by over the high rates of tax on cinema tickets.


"In fact, they (Tamil film industry) have no issue with the It is the additional 30 per cent local bodies tax levied by the state government that they are agitated about," the minister told reporters in Amaravati on Saturday.

"The Centre didn't play big brother role in fixing rates (under GST). If it (tax rate) has been agreed, it has been collectively agreed by the Council, a body representing 29 states and seven Union Territories and a lone member (the Centre).

"Council is a constitutional committee and the correct strength of it is in the states. This is a classic example for cooperative federalism," the minister pointed out.

rates were fixed by following the revenue-neutral philosophy, she added.

Asked why liquor and petroleum products were not brought under the ambit of GST, she said the states requested that a decision on them be deferred.

"It is on the request of the state governments that petroleum products and liquor are not yet brought under GST," she said.

Sitharaman said problems related to the implementation of were "largely settled" and the Centre was conducting a public interaction week across the country to enhance awareness among traders.

Replying to another question, the union minister said would be favourable for investments as the tax structure would be uniform across the country.

"Investors now need not worry about tax rates, say in Andhra Pradesh or Odisha. Also, they can have clear assessment of the costs (on raw materials) as there is a single tax. will also help exports as the logistic cost will reduce," the minister noted.

Later, she addressed traders and industry representatives to clarify doubts on

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Sun, July 09 2017. 01:00 IST
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