Union Minister of State for Commerce and Industry Nirmala Sitharaman claimed here on Sunday that the rollout of the Goods and Services Tax (GST) regime would not lead to a spike in inflation.
Interacting with reporters here after a seminar on GST, Ms. Sitharaman said there would be “no tax for those without trademark” and there would be “no tax for those doing business for less than ₹20 lakh.”
“There will not be any rise in prices. This is my answer to those who say prices will go up after GST is rolled out. The rate fixed for GST is a ‘revenue-neutral’ rate, which means that if there is tax presently, it would not go up after the GST. Either it would remain the same or it would go down. So, there would be no rise in prices,” she contended.
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The Minister also clarified that the new tax regime was only to ensure that corruption is weeded out from the system.
Earlier, representatives from various industries raised several queries and made representations to the Minister over the GST. Centre Excise Department officials too clarified the doubts.
While the association of rice merchants questioned the logic behind levying 5% GST for branded rice, even as the GST for gold was only 3%, film industry representatives sought a clarification as to how the refunded advance given to artistes would be treated for tax purpose. Rubber traders sought a relaxation in the tax rate for rubber, while makers of ‘korai’ grass mat complained of new tax on their industry. Plastic traders questioned the logic behind levying tax on recycled plastic granules.
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