Don't levy CST on inputs for export goods: Kerala asks Centre

Seeking quick redressal of its concerns on roll-out of GST, Kerala today said the state should be exempted from Central Sales Tax (CST) on raw material used to export goods.
"I urge that the concerns of the state of Kerala on GST may be addressed at the earliest...It is requested that CST may be exempted on the raw material or the input products used in the export of the state," state Finance Minister K M Mani said in his speech during a pre-budget meeting of State Finance Ministers with Union Finance Minister Arun Jaitley.
Presently, CST is imposed on raw materials or input products used in exports from the state, which is adversely affecting the growth of the export sector, he said.

He asked Jaitley to ensure deliberations with every state before decisions on future changes under GST are taken.
"The review now proposed to be done once in every three years, should be comprehensive and should be based on the views of the state governments," he said.
A Constitutional Amendment Bill for roll-out of the common goods and services tax (GST) regime was introduced by the government in the recently concluded Winter Session of the Parliament.

The government has decided to introduce the GST tax system from April 1, 2016.
On the issue of falling rubber prices, Mani said asked the Union Finance Minister to hike import duty on rubber and its products to 40 per cent so as to revive the sector.

"A scheme may be declared in the Union Budget for supporting the rubber growers with soft interest loan from banks," he said.
For spices, he asked the Finance Minister to set up a special fund in the budget for 2015-16.