Real estate, alcohol should also be under GST Bill: Arvind Subramanian

Jokingly evading any talk of politics, he said his “big hope for the GST” was “self-policing”.

Written by Aniruddha Ghosal | New Delhi | Updated: May 30, 2017 11:06 am
CEA Arvind Subramanian at the Delhi Assembly on Monday. PTI

Despite maintaining that the Goods and Services Tax (GST) Bill could be a model for the 21st Century, Chief Economic Adviser Arvind Subramanian Monday rued that the system was far from being “flawless” since subjects such as real estate and alcohol remained outside its realm. Subramanian was speaking at an orientation programme at the Delhi Assembly, which, according to speaker Ram Niwas Goel, was to help MLAs understand the Bill and its scope.

Subramanian said the GST Bill, in its present form, was the “best and model” for such a taxation policy in the 21st Century and an instance of “cooperative federalism”, but admitted it still had “too many subjects outside its realm to make it flawless”.  He also said that in India, the problem of black money was linked to “land and real estate, gold, alcohol, politics and cash”.

Jokingly evading any talk of politics, he said his “big hope for the GST” was “self-policing”. But by “keeping alcohol and land outside GST”, a “good anti-corruption device” that would aid in “governance” was lost, he said. “I really think that over time, we should try and bring land and real estate and alcohol within GST,” he said. Deputy CM Manish Sisodia, meanwhile, said the “liquor lobby and real estate lobby” had been “successful in intervening” and that the two were kept outside the GST was because “politicians and influential people are involved in real estate… A number of political leaders have put their black money in these businesses”.

While “conceptually” the GST was a “great idea” with particular benefits for Delhi — due to its service-oriented economy — it had “problems”, Sisodia said. He added that he was surprised that all state governments — ruled by BJP, Congress and others — had unanimously “rejected” the AAP government’s proposition to keep real estate within the GST.
Subramanian also spoke about the macro-economic consequences of the Bill and said there would be several benefits. He said, “Centre and states have come together to share our sovereignty… There will be… conflict. But the nice thing is we can sit and discuss.”

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  1. M
    May 30, 2017 at 8:03 am
    More corruption black money in real estate, Higher education medicine engineering, alchol. Corporate educations these are all in politicians hands, these need to be controlled as we BJP, Congress has corrupted leaders are alliance they will not bring, Need party like AAP nation wide
    1. P
      May 30, 2017 at 11:54 am
      Today the BJP is in the position it is because of Anna, Kejriwal and AAP. It was they who alleged, held demonstrations against the Congress and it's leaders and demolished the Congress's re tion as people believed luminaries like Anna and Kejriwal then perceived as selfless people from outside politics. BJP rubbed their hands in glee and the money and their PR mechanisms kicked into bring them to the position they are in today, which is possible because the only real opposition the Congress has been b ed corrupt, not by the BJP but by the AAP. It is a very distant, if at all, possibility that AAP will ever be a National Political force. AAP has been a remarkable phenomenon but like all such movements is destined to die as Modiji they have helped come to power is too potent for your own existence. What was possible for the AAP to do with the Congress is impossible wih the BJP because the Right wing ideology has no baggage of Democratic values. So dream and die in your sleep.
      1. P
        May 30, 2017 at 11:57 am
        demolished the Congress's rep.utation-----------only real opposition the Congress has been br@nded corrupt---------------------- So, your movement is going to dream and die or perish in it's sleep.