The Congress Government in Karnataka captained by Chief Minister Siddaramaiah is opposed to using Goods and Services Tax (GST) as a propaganda tool by Prime Minister Narendra Modi. Addressing the media at Belagavi on Friday in Karnataka, Chief Minister Siddaramaiah made it clear that he was opposed to GST being used as a tool of propaganda by the Prime Minister. However, he said his party was not opposed to GST.
He said, “…They are doing it for propaganda. We are not against GST, but the way they are doing it.” The Congress had y decided to keep away from the special midnight June 30 meeting convened by the Government on GST implementation.
“Prime Minister Narendra Modi as Gujarat Chief Minister had opposed GST. Now By organising a midnight event, they are now projecting as though they are bringing in a great economic reform for the country. It was the Congress-led UPA Government that had proposed GST”, he added.
Responding to a question on GST’s impact on tax revenues and the State’s exchequer, the Chief Minister said, “There are apprehensions that it may get lowered, but it has been decided in the GST council that losses incurred have to be borne by the Central Government upto five years.” According to State Government officials, about six lakh traders and firms in Karnataka have registered for GST regime so far.
“After Independence, only three midnight events have been organised in the Parliament’s central hall, firstly when India got freedom, to celebrate 25 years of independence and thirdly, to mark 50 years of Independence. But — why organising a similar event for GST at Central hall”, he questioned.
However, Karnataka regarded as a tax reform-oriented State, is set to implement the new taxation law with over six lakh firms/traders enrolling for GST. Telangana, Assam, Punjab, Rajasthan, and Kerala are the other States where enrolment has touched 100 per cent. To provide legal back up, Karnataka unanimously passed the GST Bill 2017.
According to BT Manohar, chairman, State Taxes Committee, Federation of Karnataka Chamber of Commerce and Industry (FKCCI), the GST will bring down the prices and check inflation. He said “GST will certainly bring down prices and check inflation. However, price fluctuations are sector specific. In the medium to long term, prices of a whole range of products and services should come down.” He said FKCCI has conducted 120 workshops in the last few months to create awareness on the new law.
Chief Minister Siddaramaiah has said that Karnataka is expected to incur revenue loss and the Centre has promised to compensate it.