Thursday, January 27, 2011

Govt not in favour of hasty implementation of GST


Decision taken in Cabinet meeting

Raipur, September 14, 2010

The state government does not want the Centre to hastily implement the goods and services tax (GST) across the nation. “Although, the Union government is very enthusiastic over the roll-out of the ambitious GST, but the prices of luxury items would come down and that of essential items would surge in its present format. Hence, in the forthcoming meeting of Empowered Committee on September 20, 2010, we will demand from the Centre to first encompass all the aspects of GST by taking suggestions of experts before implementing it,” said Commerce Minister Amar Agrawal while briefing to the media persons after the significant decision was taken during the Cabinet meeting at Mantralaya on Tuesday.
“Not only Chhattisgarh, but several other states, too, are opposing the draft constitutional amendment,” Agrawal added.
“The Centre had proposed three-rate structure for the GST to simplify the indirect tax regime under which goods will attract 20 percent levy, services 16 percent and essential items a concessional 12 percent,” he said.
“There will be one flat rate under GST as all the Central and state taxes like excise, VAT and service tax will be rolled into GST, once the new regime comes into effect,” he said.
The revenue earned from the GST will be equally distributed between the Union government and states, implying that out of 20 percent tax proposed for goods, both the Centre and the state concerned would share 10 percent each. The revenue collected in case of services, too, would be equally shared between the Centre and the state.
Besides the maximum rate of 20 percent, the Centre has also proposed a lower rate of 12 percent for essential items that will be equally shared between the Centre and states at 6 percent each.
The Centre aims to adopt a single rate structure with unification of the rate for goods and services in a phased manner over three years, said Agrawal.
In the first year of implementation depending upon the revenue receipt by the Centre and states, the standard rate for CGST and SGST may be reduced to 10 percent, while in the second year the rate will be reduced to 9 percent.
In the third year, the standard rate on goods could be further reduced to 8 per cent, while raising the concessional rate on goods to 8 per cent from 6 per cent, and retaining the rate on services at 8 per cent.
“But, in a phased manner, there will be single CGST rate and single SGST rate for both goods and services, i.e. 8 percent each that would be 16 percent minimum flat rate which will be much that the existing 5 percent minimum flat rate and we are strongly against this method,” Agrawal said.
“With the GST implementation, the estimated revenue loss in Chhattisgarh will be about Rs 1200 crore, but the Centre assures to compensate it. The other states will also incur heavy loss. However, no agreement has been made in this connection between the Centre and any of the state governments,” he said.
Agrawal also termed the proposed exemption threshold under GST an ‘extra burden’ on the small scale industries and said such units would have to incur heavy loss. The Centre wants to reduce the exemption threshold from Rs 1.50 crore to Rs 10 lakh for both goods and services under both CGST and SGST.
 “The complete powers of the states have been taken over through this Constitutional amendment, which is not acceptable to us. The deadline to implement GST on April 1, 20111 is not realistic,” Agrawal said.
The state government is also displeased with the proposed format GST council under which consensus made by the one third states on any agenda would be termed as approve recommendation. “At leas 3/4th or 2/3rd of the states should reach to consensus for approval of any agenda,” said Agrawal.\



Except Ambikapur, normal rains in state: Agrawal

Raipur, September 14, 2010

The state government has claimed that except Ambikapur division, the remaining part of the state had received normal rains during this monsoon season by far. “Some parts of Ambikapur, Koria and Jashpur recorded scanty or no rains this season and the government is listing such regions before announcing them as drought-hit. However, considering code of conduct that would come into effect soon in Sarguja area due to by-polls in Bhatgaon legislative Assembly area, the government would first obtain permission from the Election Commission pertaining to declaration of drought-hit places in the state,” said Commerce Minister Amar Agrawal while talking to the media persons after the Cabinet meeting at Mantralaya on Tuesday.
On scarce supply of fertilisers to the farmers, Agrawal said, “The supply of allotted urea to the state from the Centre is less than 50 percent and we are constantly demanding from the Union Agriculture department to send more racks of fertilisers quickly. We are also trying to make fertilisers available to farmers by taking racks from the private sector.”
He said the state government was attempting to solve the ‘fertiliser shortage problem’ by maintaining dialogue with the Centre.
The state government has also hiked the compensation package to the victims of wild animals and the minimum assurance would not be Rs one lakh instead of Rs 30,000. Similarly, the compensation for loss of life has been increased from Rs 1.50 lakh to 2 lakh, permanent disability - from Rs 50,000 to Rs 75,000, injury – from Rs 10,000 to 20,000 and the maximum compensation for loss of domestic animal will be Rs 15,000 as against the existing package of Rs 8000.
On the issue of Bilaspur’s cinema hall employee’s death after he was allegedly beaten up by the cops when the Superintendent Police who had been to watch the movie was misbehaved by the deceased, Agrawal said the SP had no connection with the case. “It was an unfortunate incident and it did not occurred in presence of the SP,” he said. Agrawal informed that the incident took place while one cop was buying movie ticket at the counter.
When asked to elaborate about the incident, Agrawal said, “I cannot comment more on it as the government has ordered magisterial inquiry into it.”
When asked whether the Cabinet chalked out any strategy to regain Bhatgaon legislative Assembly seat in the by-polls on October 1, 2010, Agrawal accepted that there had been serious discussion over it but denied to disclose anything by saying that the BJP would win the elections.



YC polls at Assembly level from Sept 19-21

AICC replaces state LRO in the last minute

Raipur, September 14, 2010

The Youth Congress (YC) elections at Assembly level in the state would be held from September 19-21. ‘We are committed to conduct fair and transparent polls and strong disciplinary action would be taken against those who would try to create disturbance or would be found manipulating the election process,” said Ganesh Langote, the new Lok Sabha Returning Officer (LRO) in the state while he was taking to the mediapersons on Tuesday. 
The AICC, which has replaced the existing LRO Pradeep Tiwari with Pune-based Langote, has clearly instructed that no ‘foul play’ would be tolerated during the polls.
Langote informed that primary members up to 35 years of age can fight Assembly level YC elections. The nomination forms would be distributed till September 15. The fee of the nomination form will be Rs 1500 while the SC, ST, women and BPL candidates would get the forms at discounted rate of Rs 750. The forms would have to be mandatorily submitted by September 16 along with photo ID, residential address proof and caste certificate in case the candidate belongs to OBC or backward class. The scrutiny of nomination papers and distribution of symbols would be done on September 17. Langote further informed that no cell phones would be allowed in the polling booths.
Langote informed that a ten-member committee would be constituted for Assembly level YC polls, but the members would not be allowed to contest in the polls. Similarly, ten delegates would be elected for successful conduction of polls and they would be allowed to fight YC polls at Assembly and Lok Sabha levels.
When asked about election of PCC president, Langote said it would be conducted after party’s state convention which is likely to be held in the September end.

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