Bhubaneswar : The Odisha government welcomed the decision of zero tax rate on common food items on Friday at Goods and Services Tax (GST) Council. The state government also welcomed the decision of the GST Council to recommend compensation by the Central government to the states on implementation of GST with 14 per cent growth in collection of tax for the base year 2015-16.
state government has always been pursuing no tax or lowest possible tax policy on daily consumable goods. The state government, therefore, welcomes zero tax rate on common food items and reduction in tax rate from 6 to 5 per cent by the Goods and Services Tax (GST) Council, as demanded by the state government,” said a release from the Chief Minister’s Office.
The Council has finalised that GST will be levied at multiple rates ranging from 0 to 28 per cent.
However, The state government opposed the introduction of cess as it will distort the GST structure. Therefore, the decision to continue Clean Environment Cess on coal etc. for compensation to all the states has been opposed by us,” said the release.
The state government would continue to ask to enhance royalty on coal.