GST Will do Good if Shortcomings Are Addressed Soon: Asim Dasgupta
GST Will do Good if Shortcomings Are Addressed Soon: Asim Dasgupta
Former finance minister of West Bengal and one of the key architects of GST Asim Dasgupta tells News18 that the Goods and Services Tax (GST) will do good in future if shortcomings are addressed soon.

The biggest tax reform, Goods and Services Tax (GST), rolled out on July 1 after a mega midnight launch, amid mixed reactions across the country. In the midst of the ongoing debate over GST, former finance minister of West Bengal and, as mentioned by Arun Jaitley, one of the key architects of GST, Asim Dasgupta tells News18's Sujit Nath that the new tax regime came with certain 'lacunae'.

Excerpts:

Sujit Nath (SN): Finance Minister Arun Jaitley, during the launch of the new tax regime, mentioned your contribution to GST. How do you feel?

AD (AD): I would like to convey my regards to Arun Jaitley for respecting my efforts. When I used to head the GST committee - during Manmohan Singh and Atal Bihari Vajpayee’s tenure - it was a daunting task. After working on a GST model for nearly seven years, I went on to head another committee (during the time when Manmohan Singh was PM) to structure the GST bills. The white paper was published on November 10, 2009. It is more or less similar to the GST bill which was passed at midnight. I personally think GST is a logical step after Value Added Tax (VAT).

SN: Why are traders and some state governments, political parties against it?

AD: There is no doubt that, in future, GST will be good for India. While I maintain that GST is the logical step after VAT, I also believe that there are still some things that need to be taken care of. Those can be resolved through discussion. I feel that some issues, including multiple tax slabs like 5%, 12%, 14%, 28% etc, could have been fewer. The numbers should be less in some segments while in some areas, the Centre could have done it with less tax burden (in terms of percentage). I think this is a minor issue and can be resolved in due course. I am hopeful that the GST council will consider it. Also, the next important issue is lack of awareness among people about GST.

SN: Do you think the central government rolled out GST in a hurry?

Asim Dasgupta: The government was committed to it roll out and it was just a matter of time. Every new beginning comes with certain problems. There’s nothing to worry. The government should have just conducted a public awareness campaign. That could have reduced the protests against the new system. GST is directly related to us and people need to know what GST is. In villages, rural areas, semi urban areas, people are not aware of it. Lack of knowledge on computers and lack of literacy is one of the biggest challenges. The Centre should help state governments in this awareness campaign.

SN: What do you think are the strong points about GST?

AD: It will simplify the existing tax system in India. Earlier there were several state and central taxes including Central Excise, Service Tax, Customs, CST, VAT etc. Now we have to deal with only one tax. Instead of maintaining complicated records of return under various statutes, all assesses will now be comfortable under GST as the compliance cost will be reduced. This will also help in reducing tax evasion. All traders from now onwards will ask for bills for all their purchases. This will also help in containing corrupt practices in the market.

SN: Textile traders are against 5% GST. Do you think it is justified?

AD: The government levied 5% GST on textile which was till now free of sales and Value Added Tax (VAT). I’m sure the government has their own concerns. However, the protests are expected because since 1997, they have been exempted form taxes. I think the GST Council must give their grievance due importance.

SN: Do you think that the Centre should have exempted sweetmeat industry from the purview of GST?

AD: In Bengal, I kept the sweetmeat industry tax free after much thought. This is one industry which brings in happiness to both poor and rich. And there are many underprivileged people who work in this industry too. Yes, I think the Centre must reconsider their decision on getting the industry under GST purview.

Original news source

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