GST rollout smooth; officials maintaining constant watch: Govt

The government on Friday said in Parliament that roll out of goods and services tax (GST), by and large, has been smooth and it has deployed a large number of senior officials to regularly review the working of the new indirect tax regime.

The finance ministry also expressed confidence that construction cost of flats and housing complexes will come down on account of a seamless flow of input tax credit in GST.

In a written reply in Lok Sabha, Minister of State for Finance Santosh Kumar Gangwar said the government is regularly reviewing the impact of GST across the country.

In total, 209 officers of the rank of additional/joint secretary level officers in the central government have been appointed to monitor the impact of GST at a district level, the minister said.

The feedback received is reviewed by a Central Monitoring Committee headed by the Cabinet Secretary.

"The feedback received from these officers indicates by and large that the roll out of GST has been smooth," he said.

In another reply, Gangwar said [the] cost of construction of flats, houses and complexes is "expected" to come down on account of [a] seamless flow of input tax credits of goods and services.

"However, [the] price is a function of demand and supply and many other factors," he added.

He said construction of flats, complex and buildings will have a lower incidence of GST as compared to a plethora of central and state indirect taxes levied on them in the pre-GST regime.

Gangwar said the builders are expected to pass on the benefits of a lower tax burden to the buyers by way of reduction of prices/instalments.

The GST, which subsumes most of the indirect tax levies, was rolled out on July 1.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel