GST rollout from July 1 will have serious problems: Amit Mitra

By: |
New Delhi | Published: June 4, 2017 3:14:30 AM

West Bengal Finance Minister Amit Mitra today said roll out of the Goods and Services Tax (GST) from July 1 will have "serious problems" and there is no harm in delaying its implementation by a month

Amit Mitra,  GST rollout , Arun Jaitley,  Union finance minister, Goods and Services Tax Network,  Mamata Banerjee, GSTMitra also said that the Union finance minister has to first decide whether Goods and Services Tax Network (GSTN) is ready for it.(Reuters)

West Bengal Finance Minister Amit Mitra today said roll out of the Goods and Services Tax (GST) from July 1 will have “serious problems” and there is no harm in delaying its implementation by a month. However, Finance Minister Arun Jaitley exuded confidence that states are ready to implement the new indirect tax regime from July 1. “I will stick to the target date,” Jaitley said.

Demanding delayed implementation of the GST, Mitra said: “If Centre forces July 1 roll out, there will be serious problems. When we can see signs of major problem, what is the harm in delaying by a month or so. Today also I have expressed my views saying it should be delayed”.

Mitra also said that the Union finance minister has to first decide whether Goods and Services Tax Network (GSTN) is ready for it.

You may also like to watch:

“So far, GSTN has been able to do test drive on 200-300 companies in each state. Forms and rules have been changed in May. The finance minister has to decide whether it should go ahead with the biggest fiscal reform when the IT preparedness is not 100 per cent,” he added.

On his demand for low tax rate for bidis, he said, “We will raise the issue again in GST Council meet on June 11”.

Today, the council decided to tax bidis at highest slab of 28 per cent and tendu leaves at 18 per cent. There will be no cess on bidis.

West Bengal Chief Minister Mamata Banerjee had yesterday said her government would not support the new GST system in its present form and that her government would write to Jaitley for making changes to make it suitable for all the sections of the society.

“We will not support the GST in its present form. In its present form, it doesn’t suit every section, especially the unorganised sector. They (Centre) have to rectify it…We have to continue with our fight to bring down the tax rates on certain products. Unless the rates are reduced, they will adversely impact the state’s economy and employment,” Banerjee had said.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Next Stories
1GST on gold fixed at 3% against current tax of 2% Finance Minister Arun Jaitley says
2GST on footwear up to Rs 500, apparels sub-Rs 1,000 at 5%; biscuits and beedi leaves in same slab at 18%
3Manmohan Singh’s GDP prediction post note ban has come true, says Congress leader Jaipal Reddy