The former RBI Governor Mr. C Rangarajan told that the proposed 1 % extra tax on the sales of inter-state is contrary to roll-out the GST in the Parliament. He believes that this additional tax should be removed and not be implemented to the bill.
He told the reporters, “I think GST is a good measure. Certainly that 1 per cent tax, that was contemplated, goes against the spirit of GST, and that should not be implemented.”
Earlier, the Indian FM Mr. Arun Jaitley had told last week that our government had accepted the Congress’s demand of scrapping 1 per cent addition tax, but we didn’t agree with their another demand about the GST rate in the Constitution Amendment Bill.
Moreover, the opposition party has been disturbing the Parliament as the Congress does not want to pass the GST over its demand. The opposition believes that the new indirect taxation system, where states do not have powers to collect 1 percent extra tax on the inter-state sales over an 18 percent tax rate.
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Mr. C Rangarajan said, “But on other issues, I think there should be some amount of flexibility, and we should also take note that whatever compromise is worked out is acceptable to the states also. The states may not like too rigid a formulation.”
Mr. Jaitley had told at the industry meet on GST that the additional tax of 1 percent on sales of inter-state was proposed for the big manufacturing states such as Gujarat and Tamil Nadu.
Ex-RBI Governor, Mr. Rangarajan said on the black money’s matter, “I think as we move towards less and less controls and as the fiscal system gets stabilized at a reasonable level…the opportunity or the scope for creation of black money will be less.”
In addition, he also said on the India’s GDP growth, “Perhaps the growth rate in the current fiscal ending March 31, 2016, will be around 7.5 per cent. That’s my estimate.”
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