The Goods and Services Tax (GST), introduced from July 1 after lengthy consultations among States and careful exercise by the NDA Government, will result in short-term pain and bring long-term gains, Finance Minister Yanamala Ramakrishnudu has said.
Addressing an awareness meet on the GST organised here on Friday by the Commercial Taxes Department, he said GST was the most desirable tax reform doing away with multiple taxation and cascading effect. There was consensus among tax experts worldwide on GST as it would promote ease of doing business, the Finance Minister asserted.
He termed the apprehensions of critics as unfounded while admitting that there would be some teething problems in implementation. It was the right time to implement GST as debate and discussion went on for nearly 14 years, he said, disagreeing with the view that it should be postponed for some more time.
Revenue loss
Mr. Ramakrishnudu said the tentative revenue loss to Andhra Pradesh would be around ₹2,900 crore owing to implementation of the new tax regime, and said it would be compensated by the Centre.
The GST Council would sort out issues relating to granite, textiles, and a few other commodities over a period of time, he said, citing the consensus approach that prevailed so far.
Andhra Pradesh was fully geared up to implement GST and had already done away with Commercial Tax check-posts, the Minister said. He assured industry and trade that there would be no harassment.
Describing GST as the most revolutionary tax reform, Union Minister of State for Science and Technology Y. Sujana Chowdary exuded confidence on achieving the objective of integrating markets nation-wide.
R&B Minister Ch. Ayyanna Patrudu admitted that he did not understand it and many could not though it was described as good.
HRD Minister Ganta Srinivasa Rao, Visakhapatnam MP K. Haribabu and Anakapalle MP Muttamsetty Srinivasa Rao spoke.
