The bill was instigated to enable the levy of Goods and Service Tax (GST).
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Chief Economic Advisor Arvind Subramanian, who had previously recommended a standard GST rate of 17-19 per cent, said while a GST rate of close to 22 per cent will put inflationary pressure, higher rate of 27 per cent will become totally self-defeating.
Now, what’s the date by which we are able to make it will have to be seen.
Once at least half of India’s 29 states have ratified the constitutional amendment passed by the Rajya Sabha, a GST council will be set up to determine the rate of new tax and its scope.
Kuldip Maity, MD CEO, VFS, noted: The passing of GST Bill in the Rajya Sabha is indeed an iconic economic reform in India.
Jaitley has said he hopes it will be in place by April 2017, although many experts believe this is optimistic.
The NDA government has given notice for the amended Bill to be taken up in the Lok Sabha, which is likely next week.
Jailey said ” UPA left a dead sector as far as National Highway constructions were concerned”. BJP general secretary Kailash Vijayvargiya spoke to the chiefs of the party’s state units, advising not to engage MPs in any organisational activities until the bill is passed by Lok Sabha.
While the party also sought an assurance from the BJP that they will not take the money bill route, Finance Minister Arun Jaitley however declined to commit.
The industry body said it is hopeful that the Government will be able to complete the procedural formalities for its rollout so as to be effective from April 1, 2017.
The GST will cut down the large number of taxes imposed by the central government and states and lead to the creation of a unified market, which would facilitate seamless movement of goods across states and reduce the transaction cost of businesses.
Calling GST the “brain child” of previous UPA government in the Centre, he said Congress leaders in Parliament have made government rectify certain shortcomings in the bill.
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He also said the GST passed by the Upper House was only a framework and more discussions were needed on several matters including fixing of tax rates.
