Jharkhand made entry into the group of States whose Assemblies have assented to the State Goods and Services Tax (SGST) Bill pushed by the Centre.
The Special Session called for this purpose on Thursday cleared the biggest tax reform legislation within 15 minutes of its placing without any debate.
Barring some introductory remarks made by Minister CP Singh, no discussion could take place as the JMM resorted to protests against CNT-SPT Act amendments.
The ‘one nation-one tax-one market’ regime, the way CP Singh defined it, the upcoming taxation system expected to be rolled out from July this year, would form four tax slabs. All the items and services would be placed either of the 5 per cent, 12 per cent, 18 per cent and 28 per cent category for levying taxes.
Petroleum produces and liquor have been kept out of this system initially for five years. Items falling under the four slabs are yet to be finalised and separate GST council meeting would be called for that. This apart, the State Government has also formulated GST Advisory Committee combining business conglomerates, bar council and expert consultant.
Overall, the GST would abolish 10 types of taxes levied by the State along with 8 others by the Centre in one go bringing much relief to the consumers as well as traders. Additional Chief
Secretary Amit Khare later said that the society was going to be benefited since multiple taxation and its cascading effects would be wiped out.
“If the GST is paid once on any item anywhere in the country it could not be taxed for yet another time somewhere else. This would not only bring down prices of products due to single taxation but also lessen hassle of businessmen,” he said, adding that the new system would ensure greater degree of transparency and seal the leakages.
Moreover, the Government is uncertain which way the new tax regime is going to affect the State’s economy in future. “If we take Jharkhand as a producing State which it is in terms of major and minor minerals, steel, auto etc going to be exported largely somewhere else, then we would be in a disadvantageous position. But at the same, we are also a major consuming State in terms of consumer items, food items, clothes etc on which we would be collecting taxes and gain.
It is a mixed bag as of now,” told CP Singh to reporters who, while introducing the Bill in the House, termed it ‘a revolutionary step since independence’ and hailed the Centre for its positive thinking in making that happen across the country.
In any case the Government is not much worried about revenue loss. As per the GST regulations, losing states are going to be compensated for the next five years. Compensation for Jharkhand in that scenario would be computed based on its current growth rate, i.e. 14 per cent.
This apart, scope to gain is also there. The State would get its share into central taxes such as service tax, excise and taxes earlier levied by other states on e-commerce activities emanating for Jharkhand. An estimate suggests that Rs 23,000 crore of service tax was generated from Jharkhand last year without benefiting the State.
Nevertheless, the JMM in the leadership of leader of Opposition Hemant Soren questioned the very purpose of the GST. “With this, the State Government is going to handover its powers to the Centre. Also, there is no response of the Government on CNT-SPT law which is the soul of Jharkhand and its people. Why the amendments done are not being recalledIJ When our existence is going to be compromised, then what we would do with this GST,” said the JMM leader.
Intervention of their leader prompted party MlAs to troop into the well, sloganeering and flashing placards against the tenancy amendments. Even its senior member Stephen Marandi who was the lone legislator of the House proposing amendments into the SGST draft chose not to move those allowing the Bill to clear the deck within 15 minutes.