Karnataka Small Scale Industries Association (KASSIA) has welcomed the passage of the Goods & Services Tax (GST) Bill in Rajya Sabha and said its implementation would largely benefit the MSME sector across the states.
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“But it’s still better to have a deadline”, the Finance Minister told reporters at a briefing here, a day after the Rajya Sabha passed the relevant Constitution amendment bill unanimously. It will be a destination tax.
Revenue Secretary Hasmukh Adhia, who was also present in the conference, said, “The roll out target date for the GST is April 1, 2017”.
Once the Bill is approved by Parliament and 50% of state legislatures, the GST Council would have to work out the model GST Bills which will provide operational details of the new tax regime.
The Goa assembly’s monsoon session is on till August 12, next Friday, and the centre hopes to reach the bill that enables GST there by Wednesday or Thursday.
In a letter to Union Finance Minister Arun Jaitley, State Finance Minister T M Thomas Isaac claimed the proposed amendment to clause 10 of the bill of the 122nd amendment was not discussed at the Empowered Committee meeting.
India has achieved a significant milestone with the passing of the Constitutional (122 Amendment) Bill, 2014 for GST (GST Bill) on 3 August 2016.
Modi, sources said, has also asked his senior ministers to ensure a full house on Tuesday when the Lok Sabha takes up the bill for the passage.
Once implemented, the GST will subsume various taxes including excise, services tax, octroi and other levies and the proceeds will be shared between the Centre and states. The PM has suggested that we use regional party leaders in Parliament to push state governments to expedite the process.
GST will also help corporates by simplifying taxation – it will reduce tax on tax, reduce tax compliance burden, and there will be more transparency and efficiency as it will reduce corruption and increase competitiveness.
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“Now under GST regime, it could be as high as 111 points because you have CGST (Central GST), IGST (Interstate GST) and SGST (State GST)”.
