Continue GST compensation post 22 also, TN’s loud pitch

The government also said that the GST compensation distributed to states should continue even after the end of the five-year tenure ending in 2022.

Participating in the 15thGST Council meeting at Goa chaired by Union Finance Minister Nirmala Sitharaman, stateMinister for Personnel and Administration D Jayakumar clarified that the Centre should discuss with the state governments before restructuring GST rates.

A decision on restructuring of GST rates should be taken only after clearing the GST dues for the state and then the revenue models of the state should be studied before the final decision, Jayakumar said.

Referring to the Council’s proposal that there should be gradual removal of GST exemption on some products, he said it was not acceptable to Tamil Nadu as it would affect small traders, farmers and others. The state has given concessions and exemptions to small traders. Removal of GST exemption would affect the retail traders, Jayakumar said.

Pointing out that the Goods and Service Tax was implemented on July 1, 2017, Jayakumar urged the GST council to set up appellate tribunals to clear the pending arrears due for the state.

To benefit the fishermen community, there should be total GST exemption on “fish meal” with effect from January 1, 2019, he said and also demanded reduction of GST rates on wet grinders, products made through farmers, handicrafts and matchboxes. Jayakumar also demanded clarity on the tax rates imposed on brick kiln industry and those dealing with groundnuts.

Jayakumar also demanded to slash GST rates for spare parts and accessories related to the manufacturing of jeep and railways.

He also urged the GST Fitment Committee and the Finance Commission to consider the demands from Tamil Nadu seeking a relaxation of GST on food products and the essential commodities used by the common man on day to day basis. Most of these products are manufactured or processed by farmers, fishermen and vendors and the council should relax the GST on such cost-effective items, the Minister urged.

TV Somanathan, additional chief secretary, planning and special projects implementation and Ka Balachandran, secretary of commercial taxes department also took part in the council meet, the release said.