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GST May Cover Electricity, Real Estate And Fuel, Says Sushil Modi

DIVYIA ASTHANA | 0
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| December 15 , 2017 , 10:36 IST

Months after the Goods and Services Tax (GST) was implemented in India in July 2017, the new taxation system continues to undergo revisions.

According to Bihar Deputy Chief Minister Sushil Modi, the GST Council, of which he is a member, would consider imposing the GST on electricity, fuel and selected other items that are currently outside the ambit of the tax.

“Electricity, real estate, stamp duty, and petroleum products should become part of the GST. This will be our (GST Council’s) endeavour,” Modi said, at an annual meeting of FICCI (Federation of Indian Chambers of Commerce and Industry) in New Delhi.

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Adding that it would be difficult to set a deadline for the inclusion, Modi said that it could be accomplished without amending the Constitution. If fuel was included under GST, it would come under the highest tax slab, but states would be free to levy a cess to protect their revenue, Modi added.

The Bihar deputy CM said that once the tax collection stabilised, the GST slabs could be lowered.

“The highest tax slab of 28 percent could be brought down to 25 percent and two tax slabs of 12 percent and 18 percent could be merged,” he added.

West Bengal Finance Minister Amit Mitra, speaking at the FICCI event, revealed that GST collections had dipped in October as "production by MSMEs declined by almost 40 percent".

Mitra added that compensation to states for revenue losses incurred due to the implementation of GST stood at Rs 39,111 crore in the four months since GST was implemented in July.