49th edition of GST council meeting: Madhya Pradesh Commercial Tax Minister Devda says ‘track and trace’ system should be implemented
BHOPAL / While attending the GST (Goods and Service Tax) council meeting, Madhya Pradesh Commercial Tax and Finance Minister Jagdish Devda on Saturday said that there was a need for early implementation of the ‘track and trace’ system to prevent the tax evasion on Pan Masala, Gutka and tobacco products.
Minister Devda participated in the 49th edition of the GST Council meeting chaired by Union Finance Minister Nirmal Sitaraman in New Delhi. MP Commercial Tax Commissioner Lokesh Jatav was also present at the meeting. Madhya Pradesh has been a member of the cabinet group on the capacity levy on Pan Masala, Gutka and tobacco products.
In the meeting, the efforts made by the group of ministers were lauded for constituted to suggest the formation of a GST Tribunal Bench for the speedy disposal of tax disputes.
During the meeting, Minister Devda requested that the eligibility of group-A service for the appointment of technical member (state) in the bench should be clarified.
Devda demanded that the state-level search and selection committee should be constituted and grant the right for appointing technical members to the state. There was no classification of group-A service in the state, he also said.
The Minister welcomed the proposal to keep stationary the tax levied on the tendu leaves at 18 per cent in the RCM (Reverse Charge Mechanism). He said that millions of families in the state were associated with tendu leaf collection.
Around 75 per cent of the dividend received from tendu leaf collection is given to the leaf collectors as an ‘incentive wage’. Any reduction in the rate of tax on tendu leaves is likely to adversely affect the revenue received and the amount received from the dividend to the leaf collectors, he highlighted.
Devda further said that the existing system should not be considered only from the revenue point of view, as most of the dividend is received by the leaf collectors, which is also very needful for the welfare of the tribals, who live in remote areas. Tendu leaf collection needs to be taken as a public welfare scheme and not as a taxable item.
Post the meeting, Union Finance Minister Sitaraman announced that the entire outstanding GST compensation cess dues to states for a period of the five-year would be cleared with payments of Rs 16,982 crore remaining for June 2022 and an additional Rs 16,524 crore to six states.
