Deepinder Hooda fears return of inspector raj under GST

Congress leader Deepinder Singh Hooda today raised apprehensions over the implementation of the Goods and Services Tax (GST), saying the way 'one nation, one tax' regime is being introduced it will lead to flourishing of "inspector raj".
"There are three-four concerns on the GST, one is unleashing of Inspector Raj. To enforce compliance of the provisions, unrestricted powers have been given to inspectors under the garb of anti-profiteering clause.
"The inspectors can go, scrutinise, search and make seizure. Not just the fines, but even imprisonment is permissible even for small shopkeepers, that is very concerning," he told reporters on the sidelines of a meeting called by his party's Haryana unit in connection with the forthcoming organisational elections.

Raising concerns of small shopkeepers, the Rohtak MP said that now they will also be required to file about 37 returns in a year.
"They have to file compliance certificates thrice a month, first on the 10th, then on the 15th and the 20th of each month. Whether they have adequate workforce in terms of chartered accountants and IT professionals is an issue, they will feel a little harassed," he added.
Apart from this, he said that there were contradictions in the tax regime.

"In some categories, for example on cloth, earlier there was no tax on it but it is unfortunate that for the first time five per cent tax has been imposed. Taxes on fabric were imposed during the British rule in the country," he said.

Expressing concern on high tax rate on ghee, Hooda said that vegetable oil has been kept in the five per cent tax rate slab while ghee in the 18 per cent bracket.
"In Haryana and Punjab, people consume lot of ghee. Ghee will become costly. Similarly, cashew nuts be in the five per cent slab while almonds would attract a tax of 12 per cent.
"Both in Haryana and Punjab, which are famous for producing the country's top wrestlers, costly almonds and ghee would be an issue. The wrestlers consume milk with almonds, which is considered good for their health. So, there are lot of contradictions which the government has to explain," the Congress MP from Rohtak said.

Pointing to high tax rate of 18 per cent on computers and printers, he said that when we are looking to make India an IT superpower then the taxes on these should have been low.
Hooda said that for farmers, fertiliser and pesticide prices would go up because of the GST as the tax rate has increased on these items.
Replying to a question, Hooda said original concept of the GST was "one nation, one tax" but there are five tax slabs now.
"In many countries there is flat tax rate, like in Australia, there is 10 per cent flat GST. The need was felt during Congress time that may be two or three slabs are required. Now, there are five slabs, but if you include cess and all, the slabs become nine," he said.

"We hope the government resolves and addresses these concerns and no harassment is caused to the small traders and shopkeepers and the consumers," he added.