Visakhapatnam: State finance minister Yanamala Ramakrishnudu on Friday said some economists have indicated that the state may suffer a tentative revenue loss of Rs 2,900 crore after GST, but he personally does not think so.
“States with a growth of over 14 per cent may suffer some losses after the migration, but those states with a growth rate of below 14 per cent will not feel any impact,” the minister said at a GST awareness meeting with trade bodies, industrialists, traders, dealers and tax consultants.
Admitting that there would be teething problems after the migration, Mr Ramakrishnudu said in the long run, the new tax structure would benefit India’s economy. “There will be short term pains, but there will also be long term gains,” he said.
The minister pointed out that GST was finalised for 1,211 commodities, including 380 major ones. “Of these 380 commodities, rates have slightly gone down for 165 products and up for 64. There is some uncertainty in the case of some 180 commodities,” he said.
The GST in regard to marbles, granites and fish nets is also being cleared. Also the issue of GST for e-way bills will be taken up at the next round of GST Council meeting scheduled for next month.
Minister of State for Science and Technology Y.S. Chowdary said there was no confusion over the new tax regime, as was being reported. “It is not confusion; it’s the fear of the unknown. GST is being misunderstood by some sectors,” he said.
Mr Chowdary felt that it may take a couple of years for the new tax structure to “settle fully”. GST will bring about an “economic integration” in the country.
State roads and buildings minister Ch. Ayyanna Patrudu pointed out that even some chartered accountants had told him that even as they did not fully understood the GST norms, how could they explain to their clients. In this context, he suggested for a stronger GST awareness drive among the tax practitioners.
Minister Ganta Srinivas Rao admitted that there were some teething problems and some were happy with the new regime, while others were not. “But these are all being sorted out that traders will realise the benefits of GST,” he said.
MP K. Haribabu wanted the tax authorities to advise all shops and retail outlets to have boards displaying the pre-GST and post-GST prices of the products they sell, which will raise the consumers awareness levels.
