NEW DELHI: The Congress claimed its government in Punjab has lost 40 percent revenue due to faulty GST and accused the centre of addressing the shortcomings in the tax reform on an adhoc basis.
“Due to bad implementation of GST, Punjab has lost 40 percent of the revenue. How will the states survive when there won't be any compensation after 5 years,” Punjab finance minister Manpreet Badal said a day ahead of the GST Council meet.
“We were told that GST would boost revenue but in reality it has reduced GDP and revenues, increased inflation and complicated compliance,” he said.
The Congress will push for inclusion of petrol and real estate sectors to be brought under the GST, said Badal explaining that cement, paints, varnishes and construction materials are all taxed at high 28 percent slab. Bringing petroleum prices under GST will provide relief to the consumers, he said.
To add to the woes of the common man, retail Inflation had touched a 15 month high in November last at 4.88 percent, and promise of prices falling after the GST seem hollow, Badal said.
Noting the GST revenue for November 2017 showed abysmal collections at Rs 80,800 cr, Badal said the government was sitting over a pile of export refunds close to Rs 75,000 cr.
Talking about compliance issues, the Punjab finance minister said that frequent revisions in filing dates have completely shattered the faith in the sanctity of the GST reform.
“On top of it the government is rolling out E-way bills from February 1 without any preparedness. We are not against the introduction of E-way bills, but it should not be introduced without adequate preparedness,” said Badal.
Noting the country has lost an opportunity to set the tax administartion right, Badal expressed concern over the rising representations against GST.