Karnataka: GST passed unanimously

The Karnataka Goods and Services Tax Bill 2017 was unanimously passed in the Council. The Bill was passed in the Assembly on June 15 and will come into effect in the State from July 1. Some members suggested corrections requesting to report them to the GST Council, but the bill was passed unanimously

The Karnataka Goods and Services Tax Bill 2017, earlier passed by the legislative assembly was unanimously passed by the legislative council too. The Bill will come into effect from July 1.  Small modifications were suggested by some members to be brought to the notice of the GST Council.

Presenting the Bill, the Chief Minister Siddaramaiah said the State is implementing the GST formulated by the Union Government in toto.  Instead of Central Goods and Services Tax Bill 2017 we are changing only the name making it Karnataka Goods and Services Tax Bill 2017.  The suggestions if any made here will be of no use, hence there is no need for debate. Suggestions will be sent to GST Council. Hence he requested the members to pass it unanimously and the members obliged.

The Chief Minister, however, said the UPA Government had intended to implement uniform taxation system in the country and started the preparations for formulating GST in 2007-08 and intended to implement it in 2010 April. However the then Gujarat chief minister and others had strongly protested against it.  Now they have taken a U-Turn and are implementing it.  Taking it as a criticism against the Prime Minister Narendra Modi, leader of the Opposition K S Eshwarappa said if you resort to politicising the issue we will not be “sitting and eating puffed rice.”

From 2004, Vat is in practice in the State. Under this there are two types of taxes: 4 per cent and 12 per cent.  Alcohol and petroleum products were not covered under VAT. Now alcohol is not covered under GST.  Petroleum products are covered but the time is not confirmed.  Presently under GST 4 kinds of taxes are coming into effect: 5 - 12- 18 - 28. Around 50 per cent of goods come under 18 per cent, explained the CM.

JD(S) member Ramesh Babu said that GST will reduce the tax revenue to the State.  Responding to this, the Chief Ministersaid the State should get around 14 percent.  If in the event, the State does not collect 14 per cent tax, the deficit will be made good by the Union Government for a period of 5 years, as per rules. Hence GST in the long run will be beneficial to the State.  Along with GST the State will formulate rules giving clarity he said.

The State government had given tax exemption to Kopra and raisin. Under GST they come under 5 per cent tax, said Basanagouda Patil. The CM said it would be brought to the notice of the GST Council.