Delhi Deputy Chief Minister Manish Sisodia today raised concerns over real estate and liquor industry being left out of the the GST ambit and suggested it was done because they were being run by "influential people".
Delhi Deputy Chief Minister Manish Sisodia today raised concerns over real estate and liquor industry being left out of the the GST ambit and suggested it was done because they were being run by “influential people”. “Liquor and real estate lobbies have succeeded to intervene in the GST. Without any hesitation, I can say that these two sectors have been kept out of the GST because political leadership and influential people are conventionally indulged in real estate,” Sisodia said. He said many politicians “invest their black money” in real estate business. “We are the only one country in the world which has kept the land and liquor out of the GST ambit. Even a child knows black money is invested in real estate sector. “I also wrote to all finance ministers on this issue, but my opinion was actually rejected by Council meeting of GST,” Sisodia said.
Meanwhile, addressing MLAs on the premises of the Delhi Assembly on the GST, Chief Economic Advisor Arvind Subramanian said he completely agreed on the principle of bringing liquor and land under the GST and all states should come together to make it happen. He also said Delhi’s revenue will increase as it is servicing and producing state.
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Sisodia also said the national capital will benefit after the GST is implemented. A senior government official said that as per rough estimate, there will be an increase of Rs 5,000 crore in tax collection by the city administration once the new tax regime is in place. The Deputy Chief Minister said there was still a lot of problems in the GST implementation, but not in its concept.
On his part, the Chief Economic Advisor also supported the views of Delhi Assembly Speaker Ram Niwas Goel who expressed apprehension of “conspiracy” by keeping liquor and real estate sectors out of GST and said it will only lead to huge corruption in the country. “There has been some improvement in real estate sector…you (states) have the power to change it. All state should come together. The power is with you, but I completely agree on this issue in-principle,” Subramanian said. Subramanian said that due to implementation, the tax collection of states will be increased significantly as compliance rate will rise. He also ruled out any burden on manufacturers due to the GST and said that there will be no increase in the existing tax rates.