Majority of states are not ready to bring down the tax rates on automobile sector from 28 to 18 per cent, said Chairman of the Empowered Committee of state finance ministers for the implementation of Goods and Service Tax (GST), Sushil Kumar Modi on Saturday.
"The majority of the state governments are not ready to bring down the GST rates on auto-sector from 28 to 18 per cent. They believe that in the current scenario a cut in the tax rate will lead to a loss of revenue amounting to approximately Rs 45,000 crore," Modi told reporters after attending the GST-IT meeting here.
Modi said that from the January 1, 2020 Aadhar cards will be made mandatory for enterprises seeking registration under GST, and added that the new return format which has been made easier too will be implemented and made available from the same date.
"Under the previous system, both the Centre and state governments used to process the refunds which led to delays and also led to a lack of transparency. In the new system, the refund will be processed from a single point and it will be credited directly to the taxpayers account through electronic means," Modi said.
The Bihar Deputy Chief Minister added that with Aadhar becoming mandatory for registration there will be a curb on activities of the fraudsters who were doing malpractices.
"There were many people who were committing frauds amounting to crores of rupees in the present system. These malpractices will come to an end with Aadhar becoming mandatory from January 1, the dealers who are already registered too will have to provide their Aadhar numbers," Modi said.
He also said that the format of the new return has been made public and training will be provided to taxpayers in the coming three months for filing them up.
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