West Bengal leads GST enrolment through CBEC, but won't ratify Bill over differences
Tax rates on cheap footwear, books and regional cinema are the reason for West Bengal staying put on GST roll-out despite good migration status.
- May 31, 2017,
- Updated May 31, 2017 7:43 PM IST
West Bengal has outdone other states in India in terms of enrolment in Goods and Services Tax (GST ) through Central Board of Excise and Customs (CBEC). The state is leading with 91 per cent enrolment as of now, according to Bijay Kumar, Principal Commissioner, Service Tax of Kolkata Commissionerate.The capital city, Kolkata, ranks third in list if cities with highest GST enrolment, bested by Ahmedabad and Mysore, in that order. According to data available with CII, West Bengal is also doing better than most in the direction of VAT migration too, with 86.6 per cent.With the introduction of GST, the flagship financial initiative of incumbent NDA government, the entire country will be brought together as a common market under a unified tax regime. This in turn will help with ease of business and is scheduled to be rolled out nationwide on July 1.
All is not wellWhere other states are struggling to fulfil the deadline now a month away, numbers by Confederation of Indian Industry (CII) and tax authorities show that West Bengal is at least moving in the right direction. However, the state has refused to ratify the GST Bill in its Legislative Assembly.State Finance Minister Amit Mitra has vetoed the July 1 role out of GST on grounds that the new tax regime puts unnecessary tax burden on the poorer sections. Bengal has even asked other states to pitch in; however response to this call is yet to come. In a statement yesterday, he asserted that GST in its present form is unacceptable.
Reasons for dissatisfactionWest Bengal government is unwilling to bring GST to the state until two commodities - footwear under Rs 500 and books - as well as regional cinema are exempted from tax under GST. Demands of tax exemption for cheap footwear originates has been justified by Mitra as it will put affect the lower strata of the society who use them the most. The 28 per cent tax rate applicable for regional cinema is also being ridiculed by the West Bengal government as it will force single screens in districts to close on account of rising costs, leading to job losses, Hindustan Times reported Mitra saying.
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West Bengal has outdone other states in India in terms of enrolment in Goods and Services Tax (GST ) through Central Board of Excise and Customs (CBEC). The state is leading with 91 per cent enrolment as of now, according to Bijay Kumar, Principal Commissioner, Service Tax of Kolkata Commissionerate.The capital city, Kolkata, ranks third in list if cities with highest GST enrolment, bested by Ahmedabad and Mysore, in that order. According to data available with CII, West Bengal is also doing better than most in the direction of VAT migration too, with 86.6 per cent.With the introduction of GST, the flagship financial initiative of incumbent NDA government, the entire country will be brought together as a common market under a unified tax regime. This in turn will help with ease of business and is scheduled to be rolled out nationwide on July 1.
All is not wellWhere other states are struggling to fulfil the deadline now a month away, numbers by Confederation of Indian Industry (CII) and tax authorities show that West Bengal is at least moving in the right direction. However, the state has refused to ratify the GST Bill in its Legislative Assembly.State Finance Minister Amit Mitra has vetoed the July 1 role out of GST on grounds that the new tax regime puts unnecessary tax burden on the poorer sections. Bengal has even asked other states to pitch in; however response to this call is yet to come. In a statement yesterday, he asserted that GST in its present form is unacceptable.
Reasons for dissatisfactionWest Bengal government is unwilling to bring GST to the state until two commodities - footwear under Rs 500 and books - as well as regional cinema are exempted from tax under GST. Demands of tax exemption for cheap footwear originates has been justified by Mitra as it will put affect the lower strata of the society who use them the most. The 28 per cent tax rate applicable for regional cinema is also being ridiculed by the West Bengal government as it will force single screens in districts to close on account of rising costs, leading to job losses, Hindustan Times reported Mitra saying.
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