Need IT infra for GST roll out: Saurabh Patel

The minister of state for finance Saurabh Patel today criticised the UPA government’s indecisiveness regarding GST and its policy of ignoring financial interests of the states.

Reacting to the remarks from the Prime Minister Manmohan Singh during the interaction with electronic media on Wednesday, Patel said that the very acceptance of the helplessness from the head of the central government proves that the central government is directionless in the matter of economic reforms and can not think anything but to blame the states.

In a meeting of empowered committee of the representatives from the central government and the finance ministers of the states, held on July 21, 2010, Gujarat government had came out with four points that needed to be ensured while implementing GST, informed Patel adding that the points included suggestions on establishing IT network throughout the country, giving financial independence to the states and meeting with losses that states would incur due to the implementation of the GST and sought assurance to take necessary steps to curb the price-rise that may happen because of GST. The Prime Minister had concealed the facts and tried to lead people astray, which is unfortunate, he said.

According to Patel, the central government had announced the GST rates without discussing with the states. It has not even listen to the suggestions of the committee’s chairman Dr. Asimdas Gupta, the minister of state complained.

Patel said the taxation structure shaped by the central government would prove helpful only to the big industries and will put excessive load on the common people as the daily items will become more expensive. Gujarat government is opposing the GST draft for the good of common people.

Centre’s announcement of decreasing the threshold limit for small industries from Rs 1.50 crore to Rs 10 lakh will increase the tax load on the industrial units. This will increase the unemployment, Patel said.