Port Blair, Aug 04: After Goods and Services Tax (GST) Bill was passed in the Rajya Sabha, when entire nation is happy that GST will eliminate multiple levies and it will also allow deeper penetration of digital services in Andaman and Nicobar Islands there is an apprehension that GST may make holes in the pockets of remote Islanders.
In Andaman and Nicobar Islands till now there was no sales tax.
Traders were paying only 2 percent Central Sales Tax and 6 percent Octroi to Port Blair Municipal Council, that too if required.
This is the reasons why Petrol, diesel were cheaper in Andaman and Nicobar Islands compared to entire India but now experts believe that after implementation of GST things will change totally against residents of Andaman and Nicobar Islands as Andaman is the only place, where 99 percent commodities are imported via ships, which is very expensive.
“What will be implication of GST in Andaman is being discussed by Andaman Chamber of Commerce and Industry with the Administration and Government. There is an apprehension that after GST rate of some commodities will increase. We are studying GST and ACCI will explain to government and administration that if taxation is increased in Andaman then there will be burden on us. Already we are 1200 km away from Mainland India and the freight rate of ships is 10 to 20 percent. If Andaman is affected will request government to give some kind of exemption to us,” said Mohd. Jadwet the former President of ACCI and a prominent businessman of Andamans.
However, the details are still fluid and it is still not clear what will be exact impact on Andaman and Nicobar Islands, which had no sales tax till now.
“Next one two months we will have lots of meetings to understand the situation and it will take time to get total clarity in this regard,” Mohd. Jadwet added.
Chances are there that after GST prices of vehicles will increase, leaving Car and Bike lovers equally worried.
“The government must provide some special benefits to Andamans after implementation of GST so that customers of these Islands don’t have to shoulder extra burden,” said Mr. Sagar Khurana owner of Prince Honda Showroom.
