Shimla, October 8 (Daily Kiran) : The government of Himachal Pradesh expressed its approval of the reform proposals put forth by the Goods and Services Tax (GST) Council during a meeting held on Thursday. Officials stated that these measures are designed to make the tax system more user-friendly for taxpayers and to streamline the compliance process.
The proposed reforms encompass various areas, including registration, return filing, refunds, assessments, and adjudications. The government anticipates that these changes will lead to a more transparent and efficient compliance framework for GST regulations.
The 57th meeting of the GST Council, chaired by Union Finance Minister Nirmala Sitharaman, took place in New Delhi. The Himachal Pradesh administration welcomed initiatives aimed at providing relief to small taxpayers, along with measures related to defense establishments and CSD canteens.
Discussions also covered the leasing of toll collection rights, and the state expressed support for the proposed GST exemptions related to its toll collection system.
While backing measures that simplify compliance for honest taxpayers, the state emphasized the need to strike a balance between easing regulations and effective enforcement of GST reforms.
The government highlighted the importance of carefully reviewing proposals that might compromise enforcement, potentially encourage fraud, or adversely affect legitimate revenue. This review is crucial to ensure that efforts to facilitate taxpayers do not undermine revenue security and the fight against tax evasion.
Additionally, the state government raised concerns about maintaining financial stability, requesting full compensation for any revenue impacts resulting from the implementation of GST.
The administration reiterated the need to secure a 14% annual revenue increase for five years, ensuring that revenue protection continues until the state’s actual revenue meets the secure revenue level established for the fifth year.
The proposal to form a group of ministers (GoM) to address the specific concerns and needs of hill states was also reiterated. Furthermore, the state called for a reduction in tax rates on Active Pharmaceutical Ingredients (APIs) to rectify the inverted duty structure in the pharmaceutical sector.
Such changes are expected to help reduce the accumulation of input tax credits and related refund claims, while also promoting domestic API manufacturing and the pharmaceutical industry.
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