Aiming for early implementation of Goods and Services Tax (GST), top central ministers have spoken with nine chief ministers of NDA-ruled states to ensure that the constitutional amendment is ratified by state assemblies at the earliest. The GST constitutional amendment bill was finally passed by the upper house of parliament on Wednesday evening.
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The Chief Minister pointed out that the BJP-led government after assuming power in the State in 2012 had abolished Value-Added Tax on petrol reducing the price by Rs 11 per litre. “What happened yesterday was passing the Constitution Amendment Bill to enable the GST Bill to come”, CPI (M) General Secretary Sitaram Yechury said here.
“In the single-tax regime, MSMEs must be benefitted”.
While Finance Minister Arun Jaitley said the tax rate would be “optimum”, there are indications that it may be higher than 18 per cent.
“Dual control will be allowed for entities with annual turnover of more than Rs 1.5 crore, while small players, with less than Rs 1.5 crore annual turnover, will be in the state’s control”, he said.
“One of the most significant aspects is that the GST bill was passed with unanimity”.
Setting a target of April 1, 2017 for rollout of the Goods and Services Tax, the government today unveiled a detailed roadmap for its implementation and said it is aiming for an “optimal” rate of taxation though the final decision will be taken by the GST Council.
“While the reform is seen as a landmark move to transform Indias USD two trillion economy into a true common market and bring it closer in line with the worldwide market, whether these benefits will materialise will be a test of the Modi governments ability and political wisdom to push the reform through”. This tax will be accrued to states from where the supply originates.
“But, it is good that the shift to the GST regime will lead to a uniform, seamless market across the country”, said Kanungo.
“Being a consumer state, Kerala will get Rs 4,000 crore every year once GST is in place”.
Indian states will have to pass further laws to determine the rate and scope of the tax.
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Jaitley said the government is working to roll out the GST as “reasonably quick” as possible. Once implemented, it will subsume all of the country’s central and state level duties and taxes, thus making the country a national market and contribute significantly to the growth of the economy, said Dr Naushad Forbes, President, CII.
