Nainital, July 9 (SURYAA): Union Minister Jitendra Singh on Sunday said that GST system has a special significance for Jammu and Kashmir and the north-eastern states as it promises to provide a level playing field to all.
"The Goods and Services Tax promises to provide a level playing field to all the states. This equitable fair deal has been worked out to such an extent that several developed and manufacturing states will be contributing to the economy of the lesser developed or predominantly consumer states," the Minister of State in the Prime Minister's Office told media persons here.
He said that, ahead of the GST rollout from July 1, he realised there were certain local products in the north-east which would be taxable after GST implementation, though these were tax-free earlier.
"It was explained to traders concerned that earlier the price of these products also included certain embedded taxes on raw material, which were not visible, but now the only difference was that the GST was a visible tax, although the final cost of the product would almost be the same," he said.
The Minister said the GST decision had made a huge long-lasting impact on self-esteem and participation of the states in the economic and social growth of India as a whole.
He said he gave full credit to Union Finance Minister Arun Jaitley for working out an amicable formula wherein the manufacturing states would be compensated from the central share of funds and thus would not have the chance to hold any grudge against non-manufacturing states being brought at par with them.
"The GST is important in the world today. No single country or state can hope to operate in isolation and yet progress economically," he said.