From Our Special Correspondent
Daijiworld Media Network - Bengaluru
Bengaluru, May 30: Dr Hasmukh Adhia, Union Finance Ministry Revenue Secretary, said GST coming into effect across the country from July 1 will turn out to be a game changer in attaining India’s growth potential.
Addressing a meeting on GST organised under the aegis of the State Government at the Town Hall in Bengaluru on Tuesday, Dr Adhia acknowledged Karnataka’s contribution in the framing of the GST policy framework.
He said a study done by US Federal Reserve has indicated that GST in India will propel GDP growth by 4%.
Dr Adhia explained the basic philosophy behind fixation of rates and explained that to arrive at the GST rate, the weighted average of VAT in all States has been taken.
While restaurants enjoy 4% composition in Karnataka, in many other states they attract standard rate of tax. He agreed that there is a scope for rationalisation and informed that only 19% items are in 28% bracket and 43% items are falling in 18% rate slab.
He also said how construction sector will benefit in GST and that housing will become cheaper in Karnataka. He explained the details of provisions related to transition credit.
He detailed the process of filing GST returns stating that there are many myths about filing GST returns. He assured that all representations on tax rates will be analysed and Council will take a call on all representations.
Karnataka’s Agriculture Minister Krishna Byre Gowda said it is a matter of privilege and pride for him to represent state in an all-important body like GST Council.
He praised Union Finance Minister ArunJaitley and Revenue Secretary Hasmukh Adhia for conducting GST process in an extremely democratic way allowing participation by everybody.
He said that our aspirations can only be optimally met if we simplify our compliance requirement and bring in place common systems across State boundaries. The deliberations in GST Council have been of top quality and extremely objective.
The minister pointed out that the rate fitment exercise and assured that in GST the general rate of taxation will come down. Even with lower level of taxes with higher compliance, more revenue will flow in.
He said that Karnataka is at the top of the ladder in preparedness for GST. ``While there are challenges, it will be our endeavour to make the ride smooth,’’ he said hoping that GST structure will simplify further as compliance improves.
Karnataka’s Additional Chief Secretary ISN Prasad said the State has always been supporting GST irrespective of the party in office. He stated that the entire process of finalising the laws relating to GST has been a path breaking process. He assured the Revenue Secretary that the State Government will make all its efforts in ensuring smooth implementation of GST.
State Additional Commissioner, Service Tax, Basavarajmade a detailed presentation on GST covering salient features of GST proposed to be implemented. He explained the benefits of GST and stated that it will replace a large number of Central and State taxes and also the liability to pay tax and composition schemes.
He also detailed about the processes for filing return and claiming refunds. He highlighted the basic philosophy behind rate structure in GST.
Vinod Kumar, Chief Commissioner, Central Excise, andRitvik Pandey, Commissioner for Commercial Taxes, Karnataka and over 1200 members from Trade and Industry participated in the meeting.
In his welcome address, Vinod Kumar emphasized on the importance of outreach and briefed about the outreach programme of the Central Government. He also informed about the twitter handle GST@GoIand askGSTGoIcreated for quelling doubts about GST.