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GST on petroleum products only after revenue stabilises: Sushil Modi (Lead)
Kolkata, Aug 2 (IANS) Bihar Deputy Chief Minister and GST Council’s member Sushil Modi on Thursday said the Council can think of bringing the petroleum products under the new tax regime only after the monthly revenue target of Rs 1 lakh crore is achieved.
He said there could be a “shortfall in revenue” in initial months as indirect tax rates on items are being lowered, but the revenue would increase in the long run due to greater compliance.
Modi said the new indirect tax structure would be a “complete GST” only after petroleum products, stamp and electricity duty are included.
He also said the way the GST is being implemented successfully, no state would require any compensation after three years.
“When you reduce the tax rates, there may be a shortfall in revenue for the next 3-4 months and sales remain comparatively lower during the monsoon season. But, in the long run, the revenue will gain because lowering the rates will lead to more compliance and people have a tendency to pay taxes when it is low. There will be better revenues as tax rates for more than 450 items were brought down,” he said.
In a relief for common man, the GST Council in its last meeting reduced tax rates on over 50 items including refrigerators, washing machines and small televisions, which would now be taxed at 18 per cent, down from the current 28 per cent.
“Our target is to get Rs 1 lakh crore per month,” he said on the sidelines of an event organised by the Indirect Tax Committee of the Institute of Chartered Accountants of India.
Modi said there is “no guarantee” that the prices of petroleum products would come down if they are brought in the GST ambit.
“No state would like to reduce revenue as they are earning 40 per cent of their revenue from petroleum products. Even if these products are brought under GST, the states will also be allowed to levy taxes over and above the GST rate as these are considered as sin goods,” he said.
Elaborating further, he said: “Let the revenue stabilise. When we achieve the Rs 1 lakh crore (monthly) target, then only the GST Council can think of bringing petroleum products under GST. I do not see inclusion of these products in the tax regime in near future and it will take longer time, but ultimately, stamp duty, electricity duty and petroleum products have to come in GST.”
He also indicated that the GST Council’s efforts would continue to bring more items, except some sin and luxury goods, from the 28 per cent slab and there is a possibility to create a new slab between 12 per cent and 18 per cent depending on the stabilisation of revenue.
Modi also said ten states including Bihar, Uttarakhand, Himachal Pradesh, Jammu and Kashmir and others were having relatively high revenue shortfall.
Earlier, there were apprehensions that producing states like Maharashtra, Tamil Nadu and Gujarat could face substantial shortfall in revenue but they have been doing well.
“I think southern and western states will come out of revenue shortfall soon,” he said.
The GST Council meeting on August 4 will focus on the problems faced by the MSME sector as the small manufacturers, traders and service providers have been facing difficulties due to the new system.
“We will discuss and try to sort out those issues. After this meeting we expect life of MSMEs to become much simpler,” he added.
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.
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