Representing the state, finance minister Niranjan Pujari mentioned discount of GST on vaccines and different objects would scale back the burden on widespread folks and states procuring numerous objects for Covid-management.
As chief minister Naveen Patnaik has already sought intervention of the Union finance minister in search of exemption of GST on buy vaccines for Covid-19 by the states, Pujari demanded that the GST council ought to think about the matter on precedence in view of urgency.
Elevating the problem of GST compensation to the states, the Odisha finance minister demanded that the system launched by the Centre ought to proceed this monetary yr as properly and the states be compensated accordingly.
Through the 2020-21 monetary yr, the Centre had zeroed in on a formulation to compensate the states towards the lack of income because of implementation of GST. As assortment of GST had diminished considerably because of Covid-induced lockdown, the Centre raised specific amount by borrowing and handed it to states as compensation. The quantity might be repaid out of the GST cess receipt collected by the Centre later.
The state authorities opposed a proposal to convey additional impartial alcohol (ENA) beneath the GST purview. “ENA when used for manufacturing of alcoholic liquor for human consumption is chargeable to VAT at 5% with impact from November 2017. Therefore GST council ought to preserve establishment on levy of VAT by states on ENA since alcohol is already outdoors the purview of GST,” mentioned Pujari.
Amongst others, the state authorities additionally supported a number of different proposals referring to decreasing and simplifying compliance burden of sellers, one-time discount in effective for late submitting of returns, modification of assorted provision of guidelines for clean implementation of GST, extending of due dates for submitting of returns by small tax payers in view of Covid-19 pandemic, mentioned the finance minister.