In a statement containing frequently asked questions about the Goods and Service Tax (GST), the Finance Ministry said that at the sate level, subsuming of State Value Added Tax/Sales Tax, Octroi and Entry tax, Purchase Tax, Luxury tax, and taxes on lottery, betting and gambling are included.
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The bill was passed by the Lok Sabha earlier.
“This reform will promote Make in India, help exports and thus boost employment while providing enhanced revenue”. Together we will take India to new heights of progress… “We continue to work with all parties and states to introduce a system that benefits all Indians and promotes a vibrant and unified national market”, Modi said in a series of tweets. “From the consumer point of view, the biggest advantage would be in terms of a reduction in the overall tax burden on goods, which is now estimated at 25-30%”. Introduction of GST would make Indian products competitive in the domestic and worldwide markets. “Studies show that this would instantly spur economic growth”.
A day after the unanimous passage of the Goods and Services Tax bill by the Rajya Sabha, Revenue Secretary Hasmukh Adhia on Thursday said April 1, 2017 will be the target date for the roll-out of this pan-India indirect tax regime.
Speaking to ANI about the procedure in which the bill would be implemented, Lavasa said, “First it will go to the Lok Sabha and then of course, there is a whole process of going to the states, getting it ratified, formation of the council and making the bill”.
In the coming week in the Rajya Sabha, the Mental Health Care Bill 2013 and the Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Bill, 2016 will be taken up.
He said the State government was also demanding levy of tax on tobacco products by the States over and above the GST as the Central Govt. will tax separately as per entry 84 of the Union List of the Constitution.
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In this meeting, the issue of better coordination between state governments and the party organisation is likely to figure.
