Finally the state assembly gave a nod to the Delhi Goods and Services
Tax Bill 2017 on yesterday May 31 in the tick of higher tax rates and
inflation issues. CM Arvind Kejriwal and his party MLAs also passed a
writ, where the AAP has raised its voice against the higher tax slabs of
18% and 28% under GST.
The ruling party has demanded of replacement of these higher tax slabs
with maximum fixed rate of maximum of 10%. The Deputy CM of the UT
Manish Sisodia declared that on the behalf of the house this concern
will be raised before the GST council on the next meeting on June 3.
During the debate over GST, Leader of the Opposition Vijender Gupta claimed that as an ex-member of GST council the Deputy CM will always represent and emphasize upon his party’s GST demands rather than condemning the approach. Objecting which Sisodia said that he had been speaking out for the tax rates for quite a while now. Sisodia urges the central government to make the GST MOM public so that people gets to see the live footage, in order to recognize the truthfulness of his statement.
In an interview outside the assembly Kejriwal said that since GST is a giant tax reform till this time, he and his entire party are fully with it in principle. Naturally, they should have concern related to its implementation as well. AAP thinks that the higher tax level can string along inflation, which won’t leverage to the state’s present economical condition. Economy can have actual gain from lower tax slabs as more tax can be collected with the lower tax rate. In its ruling duration the party has brought down tax rates for several times to benefit Delhi’s finances. He believes that the higher tax rate might lead to fewer acceptances.
The resolution passed in the assembly declares, “This House is in support of GST in principle, but...opposes the way in which tax rates of 18 and 28% have been fixed in GST Council meetings....This House proposes that GST rates on any goods or service should not be more than 10%, out of which 5% should belong to states and 5% to the Centre.” AAP is the 12th party that passed the GST Bill.
GST implantation will bring clarity in revenue generation, as it would compile multiple taxations into one. For instance- Delhi Municipality collects max revenue from toll tax. But there’s hardly any clarity in the process of tax collection. Revenue losses of the municipalities will suffer on account of taxes getting considered in GST must be remunerated by the Delhi government.
“Kolkata ranks third after Ahmedabad and Mysuru in GST enrolment. The Kolkata area including city and suburb has been 91 per cent enrolment to transition to GST structure,” said Mr. Mahesh Somani RERA expert of West Bengal. Speaking about the luxury property sale through Property Portal in Kolkata and thorough individual realtors Mr. Somani also added, “Tax bodies are currently having contradictory viewpoints over GST roll out. Accordingly the price of realty projects will vary. Whether it will lead to a price hike or set it on a neutral level can’t be specified right now.”
- Somani Realtors News Network