Amit Mitra finds GST worst than VAT regime

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Hurried launch of GST has made indirect tax system more primitive than VAT regime: Dr Amit Mitra

Hurried launch of GST has made indirect tax system more primitive than VAT regime: Dr Amit Mitra

The hurried launch of the Goods and Services Tax (GST), without proper infrastructure in place, has made the indirect tax system more primitive than the VAT (Value-Added Tax) regime, said Bengal Finance Minister, Dr Amit Mitra recently at a function organised by Federation of Indian Export Organisation (FIEO).

The Centre, he said, is using the ledger for manual record of refunds due to lack of interface between the GST network and customs Electronic Data Interchange (EDI) as well as the Directorate General of Foreign Trade (DGFT). Even in the VAT system, there was no manual intervention in the entire process of filing of returns.

This was one reason why the Bengal Government had asked the Centre to push back the date of GST launch, the minister said.

Citing a parliamentary committee report, he said that owing to the GST system, exporters were unable to get refunds and a sharp liquidity crunch has gripped the majority of exporters due to blocking of funds, with at least 10 to 15 per cent of their working capital getting locked.

He expressed concern about the job losses due to less business in the gems and jewellery sector, and the small and medium enterprises (SME) sector and the unorganised sectors, which are cash-based.

Significantly though, Dr Mitra said despite the GST-related hurdles, the overall growth of exports from West Bengal would continue. During the 2016-17 fiscal, export from the state was worth Rs 53,649 crore, which is expected to touch Rs 75,000 to 80,000 crore by the 2019-20 fiscal. Some 10 items account for almost two-thirds of the total exports from the state with jewellery, fishery and leather among the majors.

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Antara Tripathy M.Sc., B.Ed. by qualification and bring 15 years of media reporting experience.. Coverred many illustarted events like, G20, ICC,MCCI,British High Commission, Bangladesh etc. She took over from the founder Editor of IBG NEWS Suman Munshi (15/Mar/2012- 09/Aug/2018 and October 2020 to 13 June 2023).
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