Union Minister of State for Home G. Kishan Reddy said the Centre was continuing with its efforts to impress upon States to allow petrol and diesel to be brought under the Goods and Services Tax (GST) regime.
“Government of India is persuading … I think fuel will definitely come under the GST in the coming year,” he said, pointing out to the opposition of the State governments as a major share of their revenue now came from the tax they levy on fuel and liquor.
Mr. Reddy, who was addressing Federation of Telangana Chambers of Commerce and Industry (FTCCI) members, said this here on Thursday after the trade and industry body submitted a memorandum highlighting issues requiring urgent attention of the government in the backdrop of an economic slowdown. A consensus would be achieved as has been case with other issues concerning GST, the Minister hoped.
Input tax
In its memorandum, FTCCI sought to make a case for bringing petroleum fuels under GST, thus subsuming various taxes and cess, so that industry can avail input tax credit and thereby reduce cost of logistics and in turn cost of production.
The Federation also wanted electricity to be shifted to GST. It also wanted the 28% GST rate slab to be replaced with less than 18% “or more feasible rates.”
Compliance burden was another issue highlighted by FTCCI. “We find with new procedures, KYC norms [and] other provisions, compliance burden has increased manifold... there is no time left for productive work.”
Business climate
In his speech, the Minister highlighted various initiatives of the government and how it had established a peaceful business climate.
“The Central government has taken firm stance on internal security. There have been no terror attacks in Indian cities. The trend from last decade has been reversed. This is despite hard decisions taken by the government,” he said.
“One such decision was to abrogate Article 370 in Jammu and Kashmir. Removal of Article 370 was a decisive step… we managed this without any violence,” he said.
Investors meet in J&K
Noting that peace, stability, development, industrial growth and employment generation were the government’s main agenda, Mr. Reddy, who is incharge of Union Territories, said an investors meet would be conducted in Jammu and Kashmir. “We will also invite you to invest in Jammu and Kashmir… there is lot of scope in the areas of tourism, industry, education, healthcare,” he told FTCII members assuring them that their suggestions would be taken to the ministers concerned.
