Senior member of GST Council Sushil Kumar Modi says inclusion of petroleum products in the GST and Reducing number of GST Slab Rate may possible after revenue flow stabilises. In an exclusive interview with Sanjay Jog, Modi, who is also Bihar’s deputy chief minister, share his views on the GST System.
How one nation one tax system from 1st July last year?
In the occasion of first year completion of GST implementations modi says Achievement of newly implemented system more than our expectations in a country like India where there are 29 states and five union territories. Introduction of one nation one tax after a Constitutional amendment was a major task, especially when each states were having their indirect taxation system in form of value-added tax (VAT). What Congress-led UPA could not do it, it was possible in the BJP-led NDA rule.
Narendra Modi (PM) and Arun Jaitley (finance minister), could persuade states and take them into confidence that the revenue will be protected and it was put in the constitutional amendment bill.
In newly implemented system is purely online including registration, payment of returns, audit, E-Way Bill and Return prepartion.
It was a difficult task but was achieved by the Goods and Service Tax Network (GSTN). I must say that there are not many complaints relating to IT. Teething problems are over. People are now used to GST.
Problems were resolved at the level of GST Council. I must mention here that not a single decision was taken by dissent or by voting. Whatever statements made outside by the state finance ministers, every decision was passed unanimously in the GST Council.
What are the major issues yet have to resolve to improve GST System?
There are 2 major issues will have to work in the coming days. First one is to stabilise the buoyancy of the tax revenue. Government wants Rs 1 lakh crore to be GST collection per month in the current fiscal.
Another issue is simplification of returns. Already the committee headed by me has cleared the format of returns and it has been finalized by the group of ministers. The GST Council may discuss on unveiled a new simplified return that would require a taxpayer to file only one return every month and set a period of six months for the transition to take place in next meeting.
Reducing number of GST Slab Rate over many items. When it will be done?
It is true, Reducing number of GST Slab Rate may possible after revenue stabilises which are in the 28% slab is under GST Council’s consideration. However, unless the revenue is stablilised, new format of return is launched, e-way bill is strengthened, no major decision with regard to the rationalisation of items in different slabs is possible.