GST 1 year anniversary: Arvind Kejriwal’s deputy says abolish IGST, calls it a ‘bad idea’

By: | Published: June 27, 2018 1:54 PM

Delhi Deputy Chief Minister Manish Sisodia on Wednesday demanded abolishing Integrated GST, saying Rs 1.81 lakh crore has accumulated in the IGST fund but the money is lying idle and is causing economic loss.

Manish Sisodia, Delhi, Delhi Deputy Chief Minister, AAPManish Sisodia said the Goods and Services Tax (GST) was first conceptualised as ‘one nation, one tax’ but with five tax slabs, it has come out as ‘one nation, several taxes’. (IE)

Delhi Deputy Chief Minister Manish Sisodia on Wednesday demanded abolishing Integrated GST, saying Rs 1.81 lakh crore has accumulated in the IGST fund but the money is lying idle and is causing economic loss. He also favoured bringing real estate within the fold of GST as that will help deal with black money and called for doing away the ‘inspector raj’ associated with the electronic way or e-way bill system.

Sisodia said the Goods and Services Tax (GST) was first conceptualised as ‘one nation, one tax’ but with five tax slabs, it has come out as ‘one nation, several taxes’. He said he had opposed Integrated GST (IGST) from the beginning and had suggested sticking with only Central GST and State GST.

“I feel IGST is a bad idea. In last GST Council meeting, we got the figure of Rs 1,81,418 crore IGST which we have collected and is lying idle in an escrow account. This is neither in account of state government, nor in central government account. It’s not helping central or state governments or traders as it is just lying idle. It’s a loss to the economy,” Sisodia said at an Assocham event here.

Under GST, the tax levied on consumption of goods or rendering of service is split 50:50 between the Centre and the state. Such tax is known as Central-GST or CGST and State-GST or SGST. On inter-state movement of goods as well as imports, an Integrated-GST or IGST is levied, which accrues to the Centre. A cess is levied on top of these taxes on sin and luxury goods which make up for the compensation kitty used to make good any revenue shortfall faced by states on implementation of GST.

IGST is an interim tax paid by businesses and can be adjusted when they pay CGST or SGST. “After one year if we can decide to abolish IGST… this is not required. Today or tomorrow we have to do it if we have to make GST effective. IGST is the biggest problem in way of GST,” Sisodia said. He said the requirement of e-way bill should be done away with for intra-state movement of goods

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