“GST is one of the critical tax reforms which has potential to create one single market in India for goods & services and will boost country’s economy significantly”, he said.
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People across the spectrum from manufacturers to exporters to retailers are unanimous in welcoming the passage of GST Bill in Rajya Sabha and are hopeful that implementation of the tax reform will help the Indian economy grow.
The bill will bring in the single- biggest tax reform that India has seen since 1947, replacing various tax structures and following the principle of one country, one tax.
Also, as the barriers between states will be removed, you will not be paying “tax on tax”, which is the current situation while goods are moved across state borders. Now it has to go back to the Lower House to incorporate the amendments approved by the Rajya Sabha.
Kuldip Maity, MD & CEO, VFS, noted: “The passing of GST Bill in the Rajya Sabha is indeed an iconic economic reform in India”.
Lok Sabha is set to take up the Goods and Services Tax (GST) bill for passage on Monday during which Prime Minister Narendra Modi will intervene, even as the Centre on Friday continued efforts for its early ratification by the state assemblies. But it is still a huge improvement on the existing system…
Last December, a committee headed by the Chief Economic Adviser recommended a revenue neutral range of 15-15.5 per cent with a preference for the lower end of that range. “A present Finance Minister can not say that you collect less revenue but increase your spending”, Jaitley said when asked about former Finance Minister P Chidambaram’s demand that GST rate should be 18 per cent. So you will neither have to pay the service tax to the central government nor the Value Added Tax (VAT) and other added cesses to your state government, but only the GST. The GST rules have to be notified. “I am sure once GST is rolled out, doing business in India would be easier”. Moreover, the simplification of the tax system will reduce corporates’ and the government’s tax administration costs.
“It is always good to set a stiff target”, Jaitley said when asked about the April 2017 deadline.
“We have been hoping that GST would be implemented”.
This may lead to productivity gains.
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But there are also some concerns that the implementation of the tax could be challenging and it may have a negative impact in the short term.
