KV Correspondent

Editorial : Strengthening GST

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The GST implementation in the state is almost two months old now and to judge any new system within a period of just two months may be too premature. However, the results that have been pouring after the GST implementation should be worrisome for the government.

Even the state’s finance minister has been candid enough to admit that the new system of indirect taxation has shaken the system which will take some more time to stabilise. The minister has asked the Commercial Taxes Department to organise training programs and identify points for filing of tax returns for the ease of businesses. The Finance Minister has also asked the CT Department to constitute a couple of teams for Srinagar and Jammu to see how the GST regime is being implemented by traders in markets,

However, the government needs to move a step ahead of mere fallowing the age old practices of implementing and monitoring the reforms process.

The Finance Minister needs to create a team of dedicated officers to run a separate exercise to calculate the cost of collection of taxes so that the Finance Department can allocate resources proportionately.

The GST is a bid to reform the financing structure and this process should be more beneficial to the consumer as he should get the products at a much lower rate than wht he used to get prior to the implementation of the GST. Similarly, the manufacturer too should not face loses owing to the implementation of the new tax regime.

Apart from this the revenue collection under the new tax regime should occupy the prime focus of the CT department. The first two months post GST implementation have not shown a robust tax collection growth. In fact there has been a dip in the revenue realization

What has come to the fore is that under SGST, Expected Revenue (ER) Realization for 2018-19 has been set at Rs 6194 crores while Projected Revenue (PR) is Rs 7061.47 crores. For Liquor and ATF, ER has been set at Rs 407.14 crores while PR is Rs 463 crores.

On Motor Spirit and Diesel Oil Tax, ER is Rs 1183.44 crores and PR is Rs 1350 crores. Passenger Tax ER is Rs 13.32 crores and PR is Rs 15 crore while ER on Stamps and Registration has been set at Rs 219.69 with PR of Rs 300 crore.

One more important issue that needs to be taken into account is the issue of already existing toll posts.

Since these toll posts have become irrelevant in the new tax regime structure, the government should initiate a debate on inter- and intra-state Toll collection while Toll Posts should be handed over some additional responsibility that will add to strengthening of the GST tax regime.

KV Correspondent

Kashmir Correspondent cover all daily updates for the newspaper

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