A higher revenue neutral rate under the proposed GST law will lead to leakages, compliance issues, West Bengal Finance Minister Amit Mitra said on Wednesday.
“What is interesting to us is we have to watch it carefully. If the revenue neutral rate is too high, there will be leakages, there will be lower compliance ... GST’s whole effort is to make it transparent and simple the tax,” he said.
Mitra, who is also the Excise, Commerce and Industries Minister of West Bengal, was interacting with media on the occasion of West Bengal Day being celebrated at the Trade Fair in the national Capital.
On asked about the status of Trinamool Congress on the proposed GST Bill, Mitra said: “TMC’s position is that we in principle agree, in practice we have many issues for which we have written to the Finance Minister, one at a time.” “So like this, there are many issues, on any question on GST, in-principle we agree. And some of them have been met some of them will have to be met. For example revenue neutral rate, we don’t know what the revenue neutral rate or tax will be after GST...”, he said.