Tamil Nadu GST to be passed this month, says D Jayakumar

Chennai: Films made in the local language of the state should be subject to a lower rate of tax; handloom textiles should be tax-free; water sold in bubble tops and small plastic pouches should be exempted or taxed at a lower rate of 5 per cent and masala powders should be taxed at a lower rate.

These are some of the demands made by Tamil Nadu finance minister D. Jayakumar at the GST Council meet in New Delhi on Sunday, during which he assured the Union Government that the Tamil Nadu Goods and Services Tax Bill will be introduced and passed during the ensuing session that begins on June 14.

Addressing the GST Council meeting, Jayakumar listed several demands received by the state government from various firms and industries, which either wanted an exemption or to be brought under lower tax slab when GST comes into force from July 1.  

“I would like to draw the attention of this august house to a representation made by the Film Industry. In as much as the Constitution allows Local Bodies to tax entertainment, the levy of GST would amount to double taxation. Even if we concede that there is a power to levy GST, we feel the double levy would impose a very heavy burden on the common public. We, would, therefore, urge that levy of GST on entertainment sector should be kept at 12% so that the local bodies could also levy their own tax”, Jayakumar said.

Jayakumar said water sold in bubble tops and small plastic pouches should be exempted or taxed at a lower rate of 5 per cent, masala powder should be taxed at a lower rate of 5 per cent, unbranded sugar confectioneries should be taxed at 5 per cent instead of 18 per cent and seashells and articles and handicraft items made out of them should be NIL-rated.

He also demanded that concrete blocks and bricks should be taxed at a lower rate instead of 28 per cent for the benefit of the construction industry, power driven pumps should be taxed at 5 per cent instead of 12 per cent and that rate of tax for supply of food and drinks in restaurants without air-conditioning should be brought down to 5 per cent. Handloom textiles should be NIL-rated and beedi should be taxed at a lower rate, Jayakumar told the meeting. He also wanted the tax on pickles to be reduced from 18 per cent to 5 per cent. Handmade jewellery made by goldsmiths from the economically weaker sections should be exempted or taxed at a nominal rate, he said.