It will also consider the amendments made by Rajya Sabha in the Enemy Property (Amendment and Validation) Bill, 2016, as passed by Lok Sabha, after it is passed by Rajya Sabha.
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The constitution divides taxation powers between center and states.
“The government is approaching non-BJP ruled states too”. Also referred to as Direct Tax.
Currently, a multitude of different charges are imposed on all goods and services sold in India, with each state setting their own rates.
The key challenge for the central government is to ensure both the Centre and the states benefit from the GST – in other words, get as much as or more money than they now do. According to one estimate, the plethora of diverse state-level taxes and levies came to around 25-30%, or even higher in the case of some sectors.
The government also faces a race against time to introduce the tax by its deadline of next April, when the new financial year starts. The unified tax system will simplify the launch of start-ups by enabling a favourable eco-system that will rest on centralized and standardized GST registration.
Since the GST is one of the most transformational reforms India has seen, a change to the way the country taxes its people, it is important to examine why one of the country’s biggest, most influential parties from a state with the second-largest economy did not support the Bill. It is not a step taken by the welfare state, which has to think about the welfare of common man.
It means, that you will haul all your taxes at the point of consumption.
GST will create one single unified market by subsuming most of the indirect taxes, now levied by both Centre and State, which resulted in a fragmented Indian economy.
Also, as the barriers between states will be removed, you will not be paying “tax on tax”, which is the current situation while goods are moved across state borders.
How will GST impact various sectors? On implementation of GST, the tax rate is expected to waver between 19-22 per cent.
But Mehra, who makes and sells furniture, is among throngs of business owners hopeful Prime Minister Narendra Modi’s moves this week for a new, single national sales tax will make life much easier.
The Ministry of New and Renewable Energy (MNRE) had asked the Finance Ministry to exempt solar imports from the GST after forecasting that GST would increase the levelised tariff for grid-connected solar PV by 12-16% and off-grid solar by 16-20%.
GST’s tax structure will bring about greater tax buoyancy as it creates interlocking incentives for compliance between vendor and customer.
When will this GST be in effect?
On the basis of Mr Subramanian panel report, the Congress had been demanding a cap in the GST rate at 18 per cent in the bill. Eventually, this will get pass downed to subordinates for further procedures. Under GST this nil rate would be replaced by a combination of basic custom duty and the applicable GST rate, as explained in a blog by Bridge to India associate director of consulting Jasmeet Khurana.
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Gaurav Bansal is the founder of Registrationwala, an online platform for all types of business registration and management services.
