At least two opposition-ruled states have also assured the centre that they will ensure early approval for GST in their assemblies.
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The government is likely to move the amended Goods and Services Tax (GST) bill in the Lok Sabha for passage on Monday with Prime Minister Narendra Modi likely to intervene in the debate.
He said passage of GST Bill in the Rajya Sabha demonstrates inherent maturity of Indian politics. The Assam Chamber of Commerce lauds the efforts put in by the government in passing of the GST Bill, Rupam Goswami, Chairman of ACC, said. No decision has so far been taken in this regard. However, there are certain differences in the GST Bill 2014 and the proposed 2016 amendments as certain official amendments were circulated to the 2014 Bill on 1 August 2016.
Currently, a multitude of different charges are imposed on all goods and services sold in India, with each state setting their own rates.
Replying to a query, he claimed the states would not incur any revenue loss after the implementation of the GST Bill.
Balbir said that while the existing central taxes include Excise Duty, Service Tax and additional customs duties, the state taxes comprise of Entertainment Tax, Luxury Tax, Lottery Tax, Electricity Duty, Sales Tax, Octroi, Value Added Tax (VAT).
A day after the Rajya Sabha approved a constitutional amendment to pave the way for rollout of GST, he said the tax rate will be decided by the GST Council, which will have Union finance minister and representatives of all 29 states.
The tax will be levied on consumption rather than production which in turn will reduce the burden of taxes over all. “But even in the first instance it will come down”, Mr Jaitley said.
The government has listed the bill for next week’s legislative business in the lower house along with other important bills. Government is targeting to roll out the landmark tax reform from April 1, 2017, to create a uniform tax structure for a market of 1.25 billion people. This tax will be accrued to states from where the supply originates.
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He said the GST would “also be the best example of cooperative federalism” and “together we will take India to new heights of progress”.
