Bharatiya Janata Party (BJP) has claimed that unlike other countries that witnessed rise in inflation in primary stages after introduction of Goods and Service Tax (GST) India is going to be an exception.
BJP Parliamentarian and Madhya Pradesh president Nandkumar Singh Chouhan in a statement here on Wednesday claimed that many countries that introduced GST witnessed rise in inflation during the primary stages of its introduction but India is going to be an exception in this matter. “The simple economics over this is that the inflation rose in those countries because they had single tax system but in India over one and a half dozen taxes are being levied by State and Central Governments and the single tax is going to be levied by ending all these taxes that would be relatively less than those taxes. Due to this the expenditure of the consumer goods would come down and the consumers would get benefitted,” Chouhan said.
Chouhan further said that in current position VAT is levied everywhere from producer to distributor but with the implementation of GST the taxes of State and Central Governments would merge in it. With the implementation of new tax the goods imported would also be taxed like local products as integrated tax would be levied on imported goods, he added.
He said that the Government has prepared a hardware to help small traders that is made available to them in that they would not face difficulties in filling details of their business. 71 per cent traders have registered for the GST to get implemented. Workshops over GST are being conducted in towns with one lakh population. Efforts are also on to provide sector wise information over the new taxing system. As per the consent between state and centre traders with turnover of up to Rs 20 lakh would be kept out of the ambit of GST, he added.