Fin Min clarifies state govt free to impose certain taxes outside GST, industry fears implications

New Delhi, July 28 (KNN) The Finance Ministry clarified that the state governments are free to levy certain taxes apart from the imposed Goods and Services Tax (GST) in the country. While the levying of such taxes remain limited to ‘certain’ goods and services as of now, industries fear that it might in the future come down to them in some form or the other.

Talking to KNN, C.K Mohan, Secretary General of the Tamil Nadu Small and Tiny Industries Association (TANSTIA) said that certain states like Tamil Nadu and Maharashtra have already started imposing taxes outside the national Goods and Services Tax (GST). Since the finance ministry has reaffirmed that this is permissible, there is a fear in the industry that in future the states might start imposing taxes on different sectors.

Mohan said that permitting taxes outside the GST is in a way against the essence of GST, that was to unify the taxation in the country.

GST itself is going to boost up the revenue both for the state as well as the centre’s. By allowing free hand to the states in imposing taxes in addition to the GST, it’s not in the best interest of the industry that is already struggling with the tax rates under the GST, he added. (KNN/ DA)