By Bizodisha Bureau, Bhubaneswar, August 4, 2016 : Experts and political parties are fonfidant that Goods and Services Tax (GST) will bring radical tax reforms in the country boosting economic growth in the coming years.

The Goods and Services Tax (GST) Bill was passed in Rajya Sabha on Wednesday after five hours of debate.

Political parties in Odisha and their leaders on Thursday expressed hope that it will bring tax reforms in the country.

Odisha Finance Minister Pradeep Amat on Thursday said it would bring uniform tax rate throughout the country and help in seamless movement of goods and services across the states.

“Implementation of GST will provide more relief to the economy, industry, trade, and agriculture as VAT, CST, Entry Tax and Entertainment Tax will be subsumed in GST. The state will also be empowered to tax on services,” said the Finance Minister.

He said since GST is likely to be implemented from the year 2017-18, the central government should compensate on account of CST loss up to 2016-17 financial year.

“Our government has raised the issue to levy additional non rebatable cess i.e. Green Tax on minerals and other polluting goods sold in course of interstate trade and commerce to compensate the adverse effect of pollution,” said Amat.

He said the state government was also demanding levy of tax on tobacco products by the states over and above the GST as the central government will tax separately as per entry 84 of the Union List of the Constitution.

Leader of Opposition Narasingh Mishra said: “The GST bill was first introduced by the UPA government. The bill could not be passed as BJP was opposing it. Now the BJP government brought the bill with certain modifications. Congress party insisted that the bill introduced by BJP should undergo change.”

Former Finance Minister Panchanan Kanungo said Odisha may not get more benefit under the GST Act.

“We have to wait for the finalisation of rules of GST. We will have to analyse the tax devolution between the centre and states. But, it is good that the shift to the GST regime will lead to a uniform, seamless market across the country,” said Kanungo.

Senior Chartered Accountant, Rajeev Sahoo described the passage of GST Bill in Rajya Sabha a historic moment. “It is perhaps the most revolutionary tax reforms since independence. With the introduction of GST, producers, wholesalers, retailser and consumers would benefit and there will be end to inspector raj”.

General Secretary of Odisha Byabasayee Sangha, Sudhakar Panda expressed confidence that GST would bring respect towards businessmen. “GST will restore respect towards businessmen, who can now freely expand their activities without much hassles”.
However, the real impact of GST on the Indian economy would be felt only after about two to three years, they remarked.