VIJAYAWADA: Finance Minister Yanamala Ramakrishnudu has said that lapses in implementing the Goods and Services Tax (GST) by the Centre are resulting in hardship to the general public and traders besides causing revenue loss to States.
He said demonetisation and enactment of the Real Estate Act are responsible for the fall in growth rate in industrial and service sectors. Even today, the people are finding it difficult to withdraw money with most of the ATMs and banks not having enough cash to dispense. “Why should the people suffer due to the wrong approach of the Centre in dealing with the issue?” he reasoned.
“All States welcomed the GST saying it will simplify the tax procedures. Similarly, industrialists and traders also thought that the GST will give respite to them from the harassment of officials. But, the unimaginative manner in which GST is being implemented is increasing the burden on the people,’’ he said.
Participating in a short discussion on ‘Impact of GST Implementation on State Finance’ in the AP Legislative Assembly on Tuesday, Ramakrishnudu said the procedure followed in implementation of GST in India is different from those followed in other nations. New Zealand is the best country in effective implementation of GST with single slab system.
Ramakrishnudu underscored the need for the Centre to reconsider the slab system of GST. He said the Centre, which initially agreed to compensate the revenue loss suffered by States due to GST through consolidated fund. Despite stiff opposition from States, the Centre announced the Cess policy after the formation of GST Council, replacing the empowered committee.
He said it is not proper for the Centre to collect cess from States and return the same to them in the name of compensating GST loss. The Centre is not extending any cooperation to the States, he opined. The FM also opposed the ToR of the 15th Finance Commission by the Centre like increasing the GST registration and expanding the tax net with regard to GST.
He demanded that the Centre extend industrial incentives to AP on the lines of North-Eastern States. “We are not against the Centre giving incentives to those States. We only want the benefit to be extended to AP which has suffered a huge loss due to bifurcation,” he said.