Odisha played a major role in GST: Naveen Patnaik

Bhubaneswar: Odisha Chief Minister Naveen Patnaik on Saturday claimed the state played an important role in rolling out of Goods and Services Tax (GST), India’s biggest tax reform since Independence.

Taking to micro-blogging site Twitter, Mr Patnaik said, “The implementation should be smooth and take care of all doubts and concerns to benefit the common man, trade, commerce & industry.”

Odisha Goods and Services Tax Bill-2017 was passed in the special session of the state Assembly on May 19.

Ever since the NDA government pushed for passing of the GST Bill, Mr Naveen, despite being one of the principal adversaries of the BJP, - had supported it saying it would bring greater transparency.

The CM, on the other hand, had always strongly opposed the GST Council’s decision to continue with the clean environment cess on coal and demanded enhancement of the rate of royalty on coal.

“The decision of the GST Council to use the proceeds of Clean Environment Cess for GST Compensation Fund, meant for all states, is disadvantageous to coal bearing states like Odisha which have to bear the burden of environmental degradation and the cost of rehabilitation,” he said at the NITI Aayog’s third governing council meeting held in New Delhi in April this year.

He has even made it clear to the Union government that he would continue to pursue the central government for enhancing royalty on coal-bearing states, instead of the same being shared for compensating all the states for introduction of GST.

The CM had earlier welcomed the GST Council’s decision to impose no tax or the lowest possible tax on daily consumer goods.

“The state government welcomes zero tax rate on common food items and reduction in tax rate from 6 per cent to 5 per cent by the GST council, as demanded by the state government,” Mr Naveen Patnaik had said.

Besides, he had hailed the decision of the GST Council to recommend compensation by the Central government to the state on the implementation of the GST with 14 per cent growth on collection of tax for the base year 2015-16.

The GST is expected to check tax evasion and broaden tax base. In the new regime, all filings will be done only through electronic mode to ensure non-intrusive administration. This will minimise taxpayers’ physical interaction with the tax officials.