With price cut promise, GST to bring cheer to all

Ramkrishan Upadhyay

Tribune news service

Chandigarh, April 8

The implementation of the goods and services tax (GST) will bring back smile on the faces of residents as the rates of many items such as ghee, foodgrain, sweets and pulses will be reduced and disparity in the taxation system will end.

The disparity in taxation system has been a major cause of concern for city traders. According to the traders, usually Chandigarh follows the taxation system of Punjab. Whenever Punjab enhances the tax, the Administration is quick to follow its decision, but it never follows Punjab when it reduces taxes.

Ajay Jagga, a taxation expert, said this led to a situation where both the traders and residents were at a disadvantage. While the traders have been losing their business to other states, the residents are forced  to pay  more for the  items  which are cheaper in the  neighbouring   states.   

Sukhpal Singh, president, Sweets Manufacturing Association, said there was no VAT in the adjoining states of Punjab and Haryana on sweetmeats. They had been demanding for long that 5 per cent tax be reduced, but nothing had happened. 

Balwinder Singh, owner of a sweetmeats shop, said due to this, business has shifted from UT.  Besides, the UT is also losing tax on raw material procurement.   

Ram Karan Gupta,  chairman, VAT committee, Chandigarh Beopar Mandal,  said there  was  no VAT on pulses  (dal)  in Haryana while  the  UT  and  Punjab  were  levying 1 per cent  tax.  Likewise, Punjab was not charging tax on dry coconut but the UT was charging it at the rate of  5  per cent. 

He said Chandigarh was a non-producing area by and large and most items were brought from other states. The traders of the timber market have also suffered due to the difference in VAT on timber. Ajay  Jagga, an advocate,  said the  GST was going to be simple and easy because the proposed law was based on robust IT infrastructure and ultimately it was the technology which would be used and benefit all.