New Delhi, Jul 2: A day after the launch of Goods and Services Tax (GST), Finance Minister Arun Jaitley promised to bring the real estate sector under its ambit soon.
“In the next GST Council meeting, we will take up the issue,” he told a private TV channel on Saturday.
Delhi Deputy Chief Minister Manish Sisodia had in March written to Jaitley, urging him to bring real estate under GST to ensure transparency and curb hoarding of land and property.
But a few states are opposing the idea, Jaitley said.
“The chief economic adviser has given several presentations on the significance of bringing the sector into the GST fold. We will go ahead,” Jaitley asserted.
By keeping real estate out of GST, experts fear, the government has allowed space for black money to flourish.
Jaitley said the GST rates of 12% and 18% could converge sometime in the future. If the tax payers' base increases, the rates can come down, he explained.
Replying to criticism over multiple tax rates under GST, Jaitley said, “We could have fixed a standard 15% for all goods but it was necessary to bring down prices of food items for the poor.”
Revenues earned through indirect taxes would be used to reduce the income tax burden on the salaried class, he reiterated.
Allaying the fears of the traders, the finance minister said there is no reason for unease among traders about GST as it is the consumers who ultimately pay.
"Traders are not liable to pay tax. The tax ultimately is paid by the consumers.”
When the end consumers are ready to pay tax, why are traders worried?" he asked, adding that a lot of opposition has come from people who do not want to pay any tax. "Unease over the transition is natural but there is nothing to worry about. Many people think not paying tax is their fundamental right. This government refuses to buy this argument. You are using the roads and other amenities of the government...and, therefore, this government does not believe in not paying taxes," he said.
I-T worries
The real reason behind their worry, he said, was the fact that the entire gamut of transactions of a business would go online, "the trade volume would eventually increase and have a significant impact on their income tax,” Jaitley said.
The finance minister said, "An efficient system will help in increasing the tax base and check tax evasion."
Jaitley dismissed concerns about multiple compliance and the documentation that the GST would increase.
"Businesses need to file only one return. They will have to file their return before 10th of every month for the transactions held in the previous month. GST will ease the process of finding defaulters," he said.
Comments
Add new comment