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Lower tax rate to improve compliance: Goyal

Press Trust of India  |  New Delhi 

The today passed four bills to amend the GST law, as said lower rates will improve compliance and enhance revenue collection.

Replying to a debate on Good and Services (Amendment) Bill 2018, he said collection will not come down despite reduction in taxes as he allayed the concerns to that effect raised by some members.

The lower rates will rather improve compliance and enhance revenue collection, he added.

The four bills, which were passed together by a voice vote, are the Central GST (Amendment) Bill, Integrated GST (Amendment) Bill, GST (Compensation to States) Amendment Bill and Union Territory GST (Amendment) Bill.

Goyal said in the last one year, GST on about 400 goods and 68 services were reduced. GST came into force from July 1, 2017.

"We are empowering 125 crore people of through Good and Simple Tax," he said, referring to the GST.

Promotion of an honest tax structure will improve compliance as it will encourage people to come forward and pay taxes, he said.

On the problems faced by the textile sector, he said the has resolved most of the problems of the sector. With the introduction of GST, textile has become cheaper, he added.

While moving the bill for consideration, Goyal said the capacity to slash the GST rates on more items would go up as GST revenues and the compliance rate increases and the economy formalises.

He also pointed out that the government was able to collect GST in line with the country's fiscal deficit target.

Participating in the debate, senior said that the BJP-led government does not know how to implement GST.

"More than 50,000 MSME industries have closed down in alone due to faulty of GST," he stated.

Saugata Ray (TMC) said the recent cut in GST rates on 100 items was a "pre-poll" sop and the estimated loss to the exchequer on account of this would be Rs 12,000 crore.

"The has to explain from where the money will come," Ray said, while observing that Goyal was not present in the House.

The members then informed Ray that Goyal has gone to Rajya Sabha for voting on a bill, to which Ray remarked "This is why I say, should be from the Lok Sabha".

Referring to Goyal, Ray said "the caretaker Finance Minister" has brought four amendment bills.

"Today came to vote in the Rajya Sabha. I am wondering when the change in portfolio will happen," he said.

Kalikesh Singh Deo (BJD), while supporting the bills, asked the government to make it easy to pay taxes under the GST. He said the MSMEs were being stifled with high compliance burden under GST.

"The government is doing too little and taking too much time to do it," he said.

Anandrao Adsul (Shiv Sena) said Goyal in the later part of his speech went on a "political tangent and then the discussion revolved around politics. I couldn't understand if the discussion was on GST or was it poll campaign."

However, he said that despite the fact that India's economy was growing at a faster rate, why was the value of rupee declining and the price of fuel increasing.

Jayadev Galla (TDP) reiterated the demand to fulfil the commitments made by the Centre for

He said that the government talks about special category states in the GST law but do not want to extend the status to

"People of the state are not fools or illiterates. They will be giving befitting reply in the election. I demand extension of all benefits to ...How can we support this bill," he said, while demanding that the period of compensation should be raised from 5 to 10 years.

He also asked the Centre to remove GST on red chilly and turmeric powder.

K V Reddy (TRS) said the law has not been able to cut tax evasion and reduce fraud and "now there is more ambiguity".

He asked the centre not to bring petrol and alcohol within the purview of the GST.

(RJD), Ravindra Kumar (BJP), Renuka Butta (YSRCP), P S Chandumajra (SAD) also participated in the discussion.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, August 09 2018. 19:45 IST