Minister for Finance Etela Rajender has asked the traders to “earn legally, pay appropriate taxes and live respectfully” at least during the Goods and Services Tax (GST) regime likely to be implemented later this year.
Speaking at All India Gems and Jewellery Trade Federation meeting here on Sunday, the Minister stated that Telangana was the only State fighting for practical taxation as part of GST. He pointed out that the number of tax evaders was high basically due to unscientific taxation.
He, however, hoped that there would be no confusion in taxation during GST regime and it would also help improve transparency. Stating that gems and jewellery industry was doing a business of about ₹3 lakh crore with its share in the GDP around 6%, encouragement to the sector would further improve tax revenue from the sector. Members of the federation requested the Minister to pursue for 1.25% tax on the transactions of the industry. The Minister , in turn, told them that the discussions on the implementation of GST so far had made it clear that the Centre was examining levying a tax of about 4%on the industry.
Mr. Rajender stated that the view of Telangana Government was that the number of tax payers from the industry should go up along with transactions and the practice of “zero business” should become a thing of the past in GST system. Unscientific and indiscriminate taxation was making many traders to evade tax by looking for ways to subvert the system.
The practical taxation system would not only increase the net of tax payers but would also bring in higher revenues to the States’ and country’s exchequers. Those making money from business should not become panicky but should improve their respect in society by not evading taxes, he suggested the traders.
