Northeast will benefit from new tax regime : Union minister Jitendra Singh on GST

While confusion and uncertainty regarding Goods and Services Tax (GST) implementation continues, the government insists that the eight states in the Northeast will benefit from the next tax regime.

"GST will offer these states an opportunity to realise fiscal growth in tandem with the more developed states of India and thus make up for their own shortcomings," said Jitendra Singh, Union Minister of State for Development of North Eastern Region (DoNER), at a media interaction on GST roll out.

Jitendra Singh said that in the history of Independent India, GST is perhaps one of the most meticulously and diligently worked out reform.

CONSENSUS-BUILDING EXERCISE

For the first time, Jitendra Singh said, the Union Finance Minister sat with finance ministers of states and union territories to work out each



and every detail of the tax regime to arrive at a consensus.

The Union minister said that GST is not just a revolutionary economic reform but would start a new chapter in the country's federal system.

The Central government, Jitendra Singh said, has set a new benchmark in decision-making by following a formula of three-fourth majority in the GST Council, of which two-third is represented by states.

The minister asked people not to panic about GST launch and said that initial apprehensions will fade after everyone makes a transition to the new tax system.

Jitendra Singh said that several traders and middle-class businessman may not have to pay tax given the exemption limit under GST. Those trading in exempted items such as dal and pulses will not be required to pay tax or file return.