Union Minister Jayant Sinha said today that the Goods and Services Tax (GST) has helped bring down prices of some commodities across the country.
GST impact on prices: Union Minister Jayant Sinha said today that the Goods and Services Tax (GST) has helped bring down prices of some commodities across the country. The tax reform launched on July 1 has kept inflation under check, the MoS for Civil Aviation said, according to a PTI report. Sinha was addressing traders and officials on GST at Central Institute of Mineral Fuel Research (CIMFR), Dhanbad. “There are differences over several issues between different states. Efforts are on to bring a consensus among them. If it is achieved, the prices of petrol, diesel and liquor will be brought under GST,” Sinha said at the event. Nearly 50 per cent of the commodities are under the 18 per cent tax slab after the implementation of GST. However, items like aviation, crude oil, natural gas, diesel, petrol and alcohol are out of the GST and states would apply their own taxes. According to an FE Bureau report, the tax paid on the final products of these commodities may not offset the production costs.
This poses a chance of inflation in these industries. Sinha has echoed Finance Minister Arun Jaitley on inflation having a lesser impact. Jaitley at the time of the launch had told PTI, “Inflation will come down, tax avoidance will be difficult, India’s GDP will be benefited and extra resources will be used for the welfare of poor and weaker section.” Sinha in his address also said that air transportation in India would be developed at a large scale and Dhanbad would soon have an airstrip as the government is looking for land spanning 300 to 400 acres.