Rajasthan being a consumer state would gain out of GST system: Raje

Jaipur, Sep 5 (KNN) Rajasthan, mostly being a consumer state and the GST being a destination tax, would definitely gain out of the GST system, said state chief minister Vasundhara Raje.

Recently while intervening in a debate in the State Assembly on the motion for ratification of the 122nd Constitutional Amendment Bill, Raje has said that the Goods and Services Tax (GST) is in the interest of all states including Rajasthan and the country.

She said that implementation of the GST regime would boost development and increase investment along with opportunities for employment.

She said that after the GST system was established, along with the Centre, the states would also get share in the taxes collected on services.

Similarly, the sales tax on retail trading of goods would be shared by the Centre along with the states, she said.

Raje said that in the new regime, rates of indirect taxes and tax structure of the entire country would be unified. This would give stability to the tax system and trading would become easy.

Reduction in transaction cost in trading would lead to increased competitiveness of Indian goods and services in the international market and country’s exports would get a boost. As a result, goods prices would fall and common man would get a relief from inflation, she said.

Raje said that in view of that experience, planning for implementation of GST system in the state started long back. State-level GST Advisory Committee was set-up in chairmanship of Urban Housing Development Minister, State Empowered Committee in the chairmanship of Principal Secretary Finance and Operations Committee on GST in the chairmanship of Commissioner Commercial Taxes. She said that in this regard, district-level GST committee would be set-up for redressal of issues in the districts.

Raje told that the GST Council would give important recommendations to the State and the Central governments on GST. While fixing tax rates, the Council would ensure that the revenue collections of states were maintained at the present level, as well as the general consumers were not charged a very high tax, she added.

She said that all doubts regarding loss of revenue to the state had been well addressed in this Constitutional Amendment Bill. After its implementation, for next five years, all revenue losses to the state would be compensated by the central government. Doubts of revenue loss were raised while implementing VAT as well, but these proved baseless, she added.