Fix it at a moderate level, says Amit Mitra

The GST rate should be fixed at a moderate level which does not harm either the common man or the interest of the States, said West Bengal Finance Minister and chairman of Empowered Committee of State Finance Ministers on GST, Amit Mitra.

Speaking at a FICCI Banking conclave here, Mr. Mitra said: “The idea is to have a tax that does not kill the golden goose — the common man — and it should not be too low so as to affect State finances. The GST rate will be fixed two to three months after the amendment is passed by Parliament.” He said the Trinamool Congress had extended its support to the GST way back in 2009 as it was beneficial to the small and micro entrepreneurs.

The GST was primarily focussed on the small and medium enterprises, which would not have to deal with multiple tax system after it was introduced.

On GST compensation, Mr. Mitra said that if States’ revenues fall after GST implementation, then the Centre should fully compensate them for five years. “Safeguarding the States’ interest is a key point,” he said.