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Not ruling out rationalisation of GST rates, says Hasmukh Adhia

Adhia says, the GST may push India's GDP up by more than 4%

Press Trust of India  |  Bengaluru 

Revenue Secretary Hasmukh Adhia
Revenue Secretary Hasmukh Adhia

Revenue Secretary today did not rule out the scope for of rates fixed on various goods and services (GST) under the regime to be implemented from July one. "One thing we would agree is that there is a scope for of rates on various goods and services," he said here in an interaction with the industry on Even the Central Board of Excise and Customs Chairperson Vanaja Sarna had yesterday said the Council could revise rates if there is any justification for reconsideration. Various industries and businesses, including traders, FMCG and automobiles had been petitioning the Central government for revising rates. On concerns by representatives of food processing sector, Adhia said a decision on the rates of foodgrains, especially wheat and rice, would be taken at the June 3 meeting. "It was already mentioned by (Finance Minister Arun) Mr Jaitley that this is one issue which is still pending before the Council, and it will take a decision. We understand the food processing industry needs to be encouraged," he said. He also argued that if these items were kept in the exempted category, the food processing industry will be losing. He said the Council will take a view on the definition of branding. On concerns raised by representatives of the financial services sector, Adhia said dismissed the fear of loans getting costlier due to an implementation of "There have been some concerns raised in the financial service sector that loans and all of these will become costlier, no way (it is going to be so)," he said. "All people in financial services will know, we are not charging service taxes in deposits as well as loans, but taxes on other services.

Loans are not going to become costlier. That is a misplaced fear, because of lack of understanding,"he added. Adhia also said the may push India's up by more than 4% because of the simplicity and predictability of the new indirect regime, which will encourage people to be compliant. "Economists have argued that India's may go up by more than 4% because of — that is the kind of potential it has," he said. "Why will the go up? It is because businesses require simplicity, the predictability of regime. These are the things which are going to be fulfilled by GST," he added. Adhia said the new indirect regime will create problems but one should find solutions, instead of not allowing it to happen.

First Published: Tue, May 30 2017. 18:05 IST
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