The Jharkhand assembly on Thursday unanimously passed the Jharkhand Goods and Services Bill, 2017, clearing the decks for implementation of the Goods and Services Tax (GST) in the state, which is scheduled for July 1 roll-out. Jharkhand became third state to ratify the bill, after Telangana and Bihar. Government ministers said that various aspects of the structure would take a concrete shape as the states and the Centre move closer to its implementation and concerns over loss of revenue because Jharkhand is a ‘producer’ state would be resolved.

The main opposition party Jharkhand Mukti Morcha (JMM), which had threatened to disrupt the proceedings over anger against Jharkhand Chief Minister Raghubar Das’ comments against party chief Shibu Soren, decided against it, although it raised the issue of amendments in the Tenancy Acts appealing the Speaker to ensure that the issue got discussed in the House. The Speaker assured that the matter would be looked into at an appropriate stage. The bill was passed within half-an-hour.

Acting JMM Chief Hemant Soren, in his brief statement on GST in the House said that it would pave way for the state giving away all its rights to the Centre. “Also, tribal don’t have money to pay taxes. They have land. But the proposed amendments to Chotanagpur and Santhal Paragana Tenancy Acts would leave them with nothing. When they would cease to exist, what would one do with taxation,” said Soren, the Leader of Opposition in the House.

Jharkhand Chief Minister Raghubar Das said that, even though there may be an apparent drop in revenue because state is a “producer”, in the five years’ time, the state would be in a position to fill any gaps. “It is going to give rise to transparent business and will end inspector-raj,” he said.

Urban Development Minister C P Singh, who has been representing the state in various meetings of the GST Council, later told mediapersons that the passage of the bill would pave way for transparency and easier tax regime for the traders across the country.

With Jharkhand being a producer state, concerns remained about the state losing out on revenue as the new system provides for tax being collected in the consumer state. “We produce iron, coal and other minerals; steel; big automobiles like trucks etc. We will loose out on this. But it has been decided by the Centre that the loss would be compensated for over the next five years. Also, the state would be getting a share from the service tax and excise duty,” said Singh. He informed that, last year, the service tax component – all of which went to the Centre under the existing system – was to the tune of nearly Rs 2,300 crore. Also, there would be taxation on e-commerce, if products are availed of anywhere in Jharkhand.

Singh further added that the changes were not likely to lead to high price, as the tax rates and slabs have already been agreed at. “We are moving towards which item should be kept in which slab. Currently, foreign liquor has been kept out of GST for five years,” he said.

The Minister said that, at least 55,000 traders had already been registered for the GST system, while the process was on to get others onboard. Those with Rs 20 lakh annual turn-over or less would not require registration.#casansaar (PTI - Indian Express)