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Congress demands petroleum products, real estate be brought under GST

IANS  |  New Delhi 

The on Saturday demanded that petroleum products, real estate and electricity be brought under the GST's ambit, as it claimed that persistent pressure by it and its Vice President had forced the Council and the to reduce rates on several items from 28 per cent.

The party also said that "Prime Minister Narendra Modi's Gabbar Singh Tax" (as dubbed it) is shrewdly designed" to help his wealthy friends but hurts millions of small traders.

spokesperson Randeep Singh Surjewala said in a statement that Finance Minister Arun Jaitley spoke "post-truths" after the Council meeting on Friday while the will of the people did partially prevail the government's "arrogance".

"Persistent pressure built by the Vice President and the party forced the Council and the to reduce taxes on items of daily usage being taxed under the 28 per cent bracket. The political turmoil and widespread protests have made Modi extremely nervous and partially backtrack," he said.

"But people of India, particularly shopkeepers, traders, MSMEs, are distressed with the lopsided architecture, design and implementation mechanism of Modi ji's 'Gabbar Singh Tax'," he added.

The Congress, which has been demanding to constitutionally cap the Goods and Services (GST) at a maximum of 18 per cent, said that if electricity, petroleum, real estate are kept out, 50 per cent of total revenue stays out of ambit.

"This means that the Modi can continue to fill its coffers with Rs 2,67,000 crore annually by its back-breaking dose of taxation on petrol and diesel," Surjewala said.

Seeking to reduce GST's "compliance burden", he said that complex process of form filing has brought businesses, trades and MSMEs to a grinding halt, "while GSTN continues to crash repeatedly".

Stressing the challenges being faced by textiles sector and agriculture sector, Surjewala said the Council had not addressed them "owing to the sheer ineptitude and amateurish handling of the biggest reform by government".

"As Finance Minister Jaitley and the Modi pay lip service and create havoc, the is determined to fight this battle for turning from flawed to flawless," he said.

He said textiles was second biggest employment generator after agriculture but continues to face deep stress owing to "distorted" duty structure, where fibre is taxed at 12 pe rcent, the end-product, i.e. fabric, attracts a of 5 per cent.

"This is threatening the livelihood and profitability of non-integrated textile players of man made fibre (70 pe rcent of total), while helping the big fish to make huge profits," Surjewala said, adding that this "gross discrimination" has not been corrected, jeopardising the livelihood of millions from Surat to Panipat and Ludhiana to Tirupur.

He also said agriculture sector was being taxed for the first time with tractor and all other agricultural implements (12 percent), tyres, tubes and transmission parts (18 per cent), pesticides (18 per cent), fertilisers (5 per cent) and cold storage 18 per cent.

"There is no relief to 62 crore people engaged in agriculture," he said.

He said implementation of TDS (Deduction at Source) and TCS (Collection at Source) remains postponed till March 31 next year, Reverse Charge Mechanism (RCM) requiring the purchaser to deposit on purchase from a unregistered individual/entity also remains postponed for the period and 'E-Way Bill' concept has already been deferred till April next year.

--IANS

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(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: Sat, November 11 2017. 19:32 IST
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