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GST should be applicable to those in NE who earn over Rs 20 lakh annually: Cong

By Staff Reporter - 15 Sep 2010 12:00 AM GMT

GUWAHATI, July 1 - The Assam Pradesh Congress Committee has urged the State government to remove the checkgates run by the government departments and thus, bring an end to the illegal syndicates.

It further demanded that in line with the other parts of the country, GST should be applicable in NE region for only those people or establishments, who earn more than Rs 20 lakh per year. Or, there should be a provision to offer subsidies to all the petty traders and industrial units.

In a statement here, APCC media department chairman Pradyut Bordoloi also called for steps to relax the reverse charge mechanism for the buyers of the NE region who make their purchases from the petty traders, otherwise GST would become a bane for the small traders of the region.

Since GST will make the checkgates of the sales tax, transport, forest and other departments irrelevant, the State government should close down all these checkgates, which have emerged as the hub of all the illegal syndicates, said the APCC leader.

Bordoloi said that in the NE region GST will cover all those people who are earning Rs 10 lakh annually with effect from July 1, 2017, whereas in other parts of the country the new taxation system will cover only those who earn Rs 20 lakh a year.

The composite tax structure of GST will be available for those in the NE region who are doing business worth Rs 50 lakh a year, contrary to the provision in the other parts of the country, where this structure is being made available for those who are doing business worth Rs 75 lakh annually, Bordoloi said and demanded a similar provision for the traders of the NE region too.

He pointed out that when the GST was first proposed by the UPA government at the Centre, it was announced that the common people, particularly the small industrial units and petty traders, would be given support and the highest rate of tax would be limited within 14 per cent to 16 per cent. But the then Gujarat Chief Minister Narendra Modi opposed the GST system vehemently.

But now the NDA government at the Centre has designed the GST in such a way that it would help the corporate houses and industrial units of the organised sector and virtually ruin the small industrial units and petty traders of the NE, he said.