In the proposed GST system tax will be levied on transportation of goods and full credit will be available on interstate transactions. The GST Council, the group of state finance ministers, which is meeting tomorrow, they were talking previous year on a GST rate of 25 per cent.
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“Many states, including Bihar, West Bengal, Uttar Pradesh and Odisha feel that once GST is passed, it would be good for the country”. With the support of allies and a few regional parties that oppose the bill, it reckons the government can not muster the two-thirds majority needed for a key amendment to enact the GST.
But there seem to be some bones of contention which are keeping the Bill from seeing through Rajya Sabha where the BJP doesn’t have the requisite numbers to push the legislation through.
Speaking to ANI here, Shiv Sena leader Sanjay Raut said that the Centre’s approach of paying attention exclusively to the grand old party was not working out for them, adding that it was not going to solve the impasse over the Bill.
The business advisory committee in Parliament has allocated time for the Constitution amendment bill for GST this week. Being one of the most significant tax reform Bill in a decade or so, the GST will certainly bring cost efficiency for the companies at large. At the same time, the safeguard on the existing level of trends of revenue of the Union and States. “That is why we insisted on an 18 per cent cap”, he said.
What if there are disputes arising out of sharing of tax benefits between States once the GST is implemented? “So there is nothing for me to say”. Inter-State sales attract an additional Central Sales Tax, payable to the Centre. “GST taxation should be specifically brought in Constitutional amendment bill so that the tax payers are told what the rates would be”, H C Mahadevappa, a minister in the Siddaramaiah government told reporters here. We know that effective rate on consumer products is about 30 per cent.
“They keep saying and have put the blame on the Congress instead”, he said. “All Finance Ministers must have been briefed by their parties.from Delhi to all states there is consensus on a range of issues”, Mr Mitra, who belongs to the Trinamool Congress, said.
“The dual control issue needs to be resolved for the GST to happen”, he said.
“Above Rs 1.5 crore a smooth consistent methodology has been worked out for both centre and state to be able to work together shoulder to shoulder with regard to revenue generation”, he said.
The GST was first mooted by the Congress-led UPA government.
GST would subsume all indirect taxes like excise, sales and service levies.
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But nearly a week and a half into the four-week long monsoon session, the future of the tax reform remains in doubt, thanks to a persistent standoff in parliament between the main opposition Congress party and the treasury benches.
