GST - Empowered Committee Meet - States Want Compensation for Five Years
THE empowered committee of State Finance ministers under the Chairmanship of Kerala Finance minister, KM Mani met in New Delhi yesterday. After the meeting, Mr. Mani said, "Most of the states welcome GST. However, there are concerns regarding compensation. The Central government says that it will be given in a phased manner, while states are demanding full 100 per cent compensation for five years."
The States have expressed concern on certain vital aspects:
1. Some States want entry tax and purchase tax to continue and not get subsumed in GST.
2. If these taxes are merged, Centre should give compensation for 15 years.
3. Some States want the right to levy extra tax on tobacco and tobacco products over and above the applicable GST rate.
4. Manufacturing states want the origin-based 1% tax on exports. But some states have expressed concerns on that.
Mr. Mani is to meet the Select Committee of the Rajya Sabha on June 16th.
But is the babudom ready? We have just nine months to go. A senior officer connected with the technological part of GST told me, "we are GST ready!" I could find a trace of sarcasm there.