Finance Minister turns down demands for deferring GST rollout
Finance Minister on Wednesday rejected demands for
deferring the Goods and Services Tax (GST) rollout saying the Constitution does
not give luxury to delay the nation's biggest economic reform by six months.
Not ruling out a few initial glitches when more than a dozen state and central
taxes are abolished and barriers between 29 states done away with, FM said the
system is fully geared up and will eventually smoothen itself out. While there
have been sporadic protests in some cities against implementing the GST without
giving businesses more time to prepare, Trinamool Congress has decided not to
attend the gala event planned in Central Hall of Parliament on June 30 midnight
to usher in the mega tax reform. West Bengal Chief Minister termed the
"hurried" roll out of the GST as "epic blunder" by the
Centre and demanded deferring it by six months to help small businesses.
FM, however, said the date of GST implementation, rules
and tax rates had been decided through a consensus by the GST Council -- a body
that is made up of representatives from each state as also the central
government. "Those who are talking in terms of deferring (GST) by 6 months
and so on, that's a constitutionally impossible thing," the finance
minister said.
The Constitutional
amendment approved by Parliament in September last year gives time only till
mid-September to replace the existing indirect tax structure by the GST. In
absence of the GST, there will be a constitutional crisis as no tax can be
levied on goods and services. "More importantly there is a constitutional
mandate, and the mandate is on September 15 you will lose your right to collect
existing taxes. So, therefore, the alternate system has to come in place and
hopefully, by that date the (GST) system will come into place in a more smooth
manner," he said
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