Need comprehensive paper on GST: Amit Mitra

New Delhi: West Bengal finance minister Amit Mitra has sought a comprehensive paper on goods and services tax, saying the indirect tax regime that completed two years of rollout on Monday is plagued by numerous problems relating to structure, function and implementation.
In a letter to union finance minister Nirmala Sitharaman, Mitra pointed at distortions in the rate structure, issues with the return filing and refunds. “At this juncture, I would humbly request that a comprehensive paper needs to be prepared, which addresses the issues raised...along with concerns of others.”

The paper be placed before the GST Council as a single agenda for collectively deciding upon the future course of action, Mitra said in the letter, dated July 1.

ET saw a copy of the letter. Mitra said the slab of 28% should be abolished on items other than sin goods and services and there should be rationalisation of rate of goods and services attracting 12% and 18% GST “so that as practicable as possible most of the items are brought in the 12% category”.

He said he had advocated that basic items of mass consumption should be either exempted or attract a lower rate of tax.

“(One) worrying aspect that has unnecessarily been lingering for the last two years is the failure to remove the distortions in the rate structure,” Mitra said in the letter, adding that a number of services and goods suffered inverted duty structure.

He also flagged the issue of delayed refunds and the need for checking evasion.