The revolutionary tax reform, Goods and Services Tax (GST), will bring much of the informal sector into the formal sector, largely curbing tax evasion, Minister of State for Energy and Coal (independent charge) Piyush Goyal said here on Wednesday.
Speaking at an interactive session on GST, he said with its “one country, one tax” motto, GST would hugely benefit the consumers.
Teething troubles would not be insurmountable, he said, cautioning against attempts to derail the process of rolling out GST with “a deliberate campaign of disinformation.”
“The honest will have nothing to fear and the dishonest will have to pay up,” Mr. Goyal said, reassuring the trade and industry about the implementation.
The session was organised by the CII, The Vizagpatam Chamber of Commerce and Industry and the A.P. Chamber of Commerce and Industry Federation.
Lok Sabha member K. Haribabu explained the importance of the GST Council in his address.
‘No need to fear’
In his lively interaction, Mr. Goyal, himself a CA, reassured representatives of trade and industry that they need not fear about anything and GST was not an instrument of tax terrorism.
On the observation of Narasimha Rao of small-scale granite units that tax on them would be doubled and that on big units reduced from the present slab, the Minister said they would retain their niche and survive.
He replied in the negative to a plea by CREDAI Visakhapatnam chairman G.V.V.S. Narayana to drop inclusion of land cost while calculating GST.
While seeking exemption of all temple services from GST, former Vice-Chancellor V. Balamohandas wanted that petroleum products be brought under its ambit.
Praja Spandana president C.S. Rao, however, urged safeguards to protect small-scale industry, the marginalised and vulnerable sections.
Fly-ash sector
The government was discouraging an eco-friendly product like fly-ash bricks by imposing a tax of 12%, said Venkateswara Rao, representing the industry.
Mr. Goyal said all the suggestions would be taken note of and appropriate action taken. GST was a huge move and the loose ends would be addressed considering them in the GST Council represented by States and the Centre.
Anakapalle MP M. Srinivasa Rao, MLA P. Vishnu Kumar Raju, MLC P.V.N. Madhav, and president-elect of the AP Chambers of Commerce and Industry Federation G. Sambasiva Rao participated.
O. Naresh Kumar of the federation conducted the proceedings.
