Kolkata: Amid fears of price rise after GST implementation, the Andaman and Nicobar islands administration has constituted a committee to study its impact.
Lt Governor of the Union Territory, Lt General A K Singh (retd) said the committee led by chief secretary will study implications of GST for the islands, keeping in mind the prevailing tax regime and subsidies.
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“We have only octroi here at present. So, the committee will study how we can implement the new GST. Ours is a peculiar case because of subsidies to islanders. We want a smooth transition to the new GST system,” Singh told PTI.
After the GST Bill was passed in the Rajya Sabha a few days ago, local chambers of commerce have expressed apprehension that prices of various commodities in the islands will rise once the new tax regime is implemented.
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At present, the UT imposes no sales tax, but only an octroi when any product enters the chain of islands in the Bay of Bengal.
