GST Regime To Make Indian Goods Cheaper: Modi.

 Patna: Deputy CM Sushil Kumar Modi, who heads the empowered committee of the finance ministers of the states on goods and service tax (GST), said on Friday that the introduction of the new harmonious GST regime in the country would make Indian goods cheaper both in the national and international markets, making the Indian economy more competitive compared to China, as India's export would get an added fillip and boost.

Simplifying it, he said that if the cost of production of any commodity was Rs 100 and the total tax charged is Rs 30, then the sale price of the same commodity in the present situation becomes Rs 130. "Under GST regime, the same product would sell at far lesser amount, making it more attractive in the national consumer market, and hugely cheap in the international market that would boost the country's exports," he said, adding: "It is the biggest tax reforms happening in the country."

Modi, who led a 40-member Indian team on 10-day tour of four countries -- France, Spain, Belgium and Luxembourg -- of the European Union (EU), comprising 27-member countries of the Europe, returned here on Thursday. He added, "The GST proposed by the Centre here is patterned on the harmonious tax regime practiced in the 27-member countries of the EU, but it is suited to Indian conditions. If they can have one currency Euro and common tax regime, then India with 28 states was capable of achieving it."

While the Centre here is scheduled to introduce the GST regime on April 1, 2012, the Bill in this regard, earlier tabled in Parliament, is with the Parliamentary Standing Committee headed by former Union finance minister Yashwant Sinha for incorporation of required amendments to make it commensurate with the demands and needs of various states. Once cleared by this Committee after incorporating the amendments, it would go through the motions of parliamentary passage after the Central cabinet takes it up.

Modi said that the question that the BJP-ruled states were opposed to it was "absurd, meaningless and unfounded", since even other states, including Congress-ruled Haryana, have expressed reservations. "The attempt would be to satisfy the needs and demands of all states, since once the GST regime comes into force, it would be binding on every state," he said.

According to Modi, on the pattern of the EU Council and Court of Justice of European Union located at Luxembourg, the GST regime would have GST Council, and also Dispute Settlement Authority (DSA) to resolve the situation created if any state of the Indian Union takes a step that militates against the new GST regime. "The doubts and fears of the states that DSA would undercut their autonomy can be ironed out," he said.

Source : timesofindia.indiatimes.com