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| Chamber hail centre decision aimed at phasing out CST | | | Jammu, April 02,
President Chamber of Commerce and Industry Ram Sahai
has hailed the decision of the central government aimed at phasing out of
central sales tax with effect from current financial year.
In a press statement issued here the Chamber President also appreciated the
decision about abolishing form-D which was being used by the government
departments including defence, Railways and other establishments for saving
the impact of Value added tax.
Since the inspection of VAT regime Chamber of commerce and Industry has been
demanding the phasing out of CST as promised by Government of India at the
time of its introduction.
Moreover chamber had been repeatedly taking up with the central empowered
committee and the state government the issue of form-D system which our
state government had abolished from the very first day but other states
like Punjab were continuing the same causing great loss of diversion of our
business to the adjoining states causing huge loss of revenue to the
state exchequer as well.
Mr Ram Sahai further pointed out that the firms and companies undertaking
the works on big projects in the state like power or works under
reconstruction schemes are importing all their requirements from outside
the state against form-C by paying just 4 per cent CST and now shall be
paying 3 per cent CST only, whereas the VAT on the most of the items
including unspecified items is 12.5 per cent which means that while local
businessmen are deprived of their business, the state is also loosing huge
amount of tax which in case of local purchases by these firms and companies
could have been a substantial gain in the state exchequer. So it is
imperative that state government should make it mandatory for outside firms
and companies to meet their requirements from the local market or they
should be made liable to pay the state entry tax equal to the balance of
local VAT rate and the amount paid against CST. Chamber appeals to the state
government to immediately impose entry tax on the said items because this
step will check the leakage and evasion of tax to a great extent.
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