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Thursday, July 19, 2018

GST impacts: Prices of essential items won’t rise due to GST, says Tamil Nadu Finance Minister

Members of Tamil Nadu Cinema Theatre Owners' Federation called on Chief Minister K Palaniswami at the Secretariat on Saturday. The Federation said it had decided to cancel shows with effect from July 3 following the imposition of 30 per cent tax.

By: PTI | Chennai | Updated: July 1, 2017 6:29:40 pm
GST rollout, GST launch, Entertainment tax, Tamil Nadu GST, D Jayakumar, Tamil Nadu Finance Minister GST, Cinema GST, Movie ticket GST, Indian express Tamil Nadu Finance Minister D Jayakumar. (PTI Photo)

Tamil Nadu will raise the apprehensions voiced by various industries on Goods and Services Tax at the next round of the council’s meeting, a State Minister said here. “There is no need to worry as prices of essential commodities will not rise due to implementation of GST,” Finance Minister D Jayakumar said.

“In the earlier system there were several taxes for a state. But all such taxes have now come under GST and would lead to a situation where price rise will be controlled,” he told reporters. Responding to a query about theatre owners expressing concern over 30 per cent entertainment tax levied by the State government, he said it would be discussed with the Chief Minister (K Palaniswami) and suitable action would be taken.

Meanwhile, Tamil Nadu Cinema Theatre Owners’ Federation president Abirami Ramanathan, along with senior office-bearers called on Chief Minister K Palaniswami at the Secretariat on Saturday to raise the issue. The Federation on Friday said it had decided to cancel shows with effect from July 3 following imposition of 30 per cent tax.

On the indefinite strike launched by cracker manufacturers in Virudhunagar district against the GST rates, Jayakumar said their concerns would be discussed during the next round of GST Council’s meeting. “Council meetings normally held in New Delhi do not come to an end since GST has been implemented. The Council will meet every month on the first Saturday. In the next Council meeting we will raise those issues”, he said.

Commercial Taxes Department, Additional Chief Secretary, C Chandramouli said due to the implementation of GST the States’ revenue was expected to increase rather than decrease. “In the earlier tax system there was a cascading effect (to buyers) due to implementation of various taxes. But now, such an issue will not arise”, he said.

To a query as to whether GST would pose a hurdle to the state revenue, Jayakumar clarified that the late AIADMK Supremo and Chief Minister J Jayalalithaa was very clear that the revenue of the State should not get affected due to GST. He said a law had been enacted by the Centre to ensure that states’ revenue does not get affected due to the implementation of GST.

“Due to the implementation of GST, each year states will be compensated to the tune of 14 per cent towards the loss incurred,” he said. Asked how many traders had registered under the GST network, he said of the 6.50 lakh traders in the state, 93 per cent of them had migrated to the new system.

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