Outlining the key aspects of the latest reforms in the GST, Union Finance Minister Nirmala Sitharaman on Thursday said “Bengal had a “strong influence” in deciding the date of the decision of unveiling the new generation indirect tax rate from September 22.

Addressing a GST-related discussion at the National Library’s Language Building in Kolkata, Sitharaman said the new tax structure will benefit several key industries in West Bengal.

“I am happy to say that the determination of September 22 as the implementation date for Next Gen GST was largely influenced by Puja. The Shubh Mangal Diwas, when the revamped GST comes into effect, coincides with the first day of Navratri, the day after Mahalaya. There is, therefore, a strong influence of Bengal in this decision-making,” she said.

The event was attended by a host of BJP leaders, including state BJP chief Samik Bhattacharya, Union minister Sukanta Majumdar, Tathagata Roy, former MPs Swapan Dasgupta and Dinesh Trivedi.

Earlier this month, the Goods and Services Tax (GST) Council, in its 56th meeting, cleared the next-generation reforms under the eight-year-old indirect tax regime. It paved the way for a broad two-slab structure of 5 per cent and 18 per cent, with a demerit rate of 40 per cent rate only for super luxury, sin, and demerit goods. The new tax regime will come into effect from September 22.

Explaining how the Next Gen GST will benefit various industries in Bengal, Sitharaman said, “Several industries in Bengal, especially in the handicraft and small-scale sectors, will see a reduction in tax rates. The new framework will help local industries.”

Sitharaman also pointed out that products like ‘Nakshi Kantha’ (embroidered clothes), Malda’s mangoes, Darjeeling tea, jute bags, hosiery, and ready-made garments would directly benefit from the new reforms.

On the question that many states will lose revenue due to tax cuts, the Finance Minister said: “Revenue will not only decrease for the state, but also for the Centre.” She also made it clear that the Centre was not considering any compensation to states for potential revenue loss arising from the latest rate cuts, stressing that the impact will be shared “equally” and given the devolution of taxes, while the Centre’s share will be even smaller.

With PTI