Goemkarponn desk
Panchyat Minster Mauvin Godinho on Sunday said that GST on any product can never be made zero because it will not allow manufacturers to claim the input tax credit
Godinho speaking to reporters during the Tika Utsav at Bogmalo said that the Government had been very careful while calculating the GST and had reduced GST on many of Covid equipment
“We had a good meeting of the 44th GST Council and while important products have been exempted from GST till 30th September, GST from many other products have been reduced from 28 percent to 12 and 18 percent to 5 percent. There is a misunderstanding that why GST cannot be zero but it can never be zero because manufacturers will not be able to claim input tax credit and instead of becoming cheaper, manufacturers will have to load the tax to the prices and under this mechanism prices will go higher on the contrary. We have priced GST in such a way to provide relief and benefit to the patients who receive it . Some people questioned why vaccine GST cannot be made zero and I want to say that 75 percent vaccines are purchased by the centre and given to states and the tax will go back to the government and it makes no sense lowering it. On the contrary, of the 5 percent GST levied, 2.5 percent will go back to the state and in the end, 70 percent of the entire tax collected will be devout to the states again and where is the loss to anybody” said Godinho
Godinho also said the Tika Utsav was a great initiative