Indian states will have to pass further laws to determine the rate and scope of the tax. It is expected to be hugely beneficial for businesses, especially those that work across state lines, but because it is a destination tax – collected only where goods are consumed – manufacturing states are expected to take a major hit.
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He said passage of GST Bill in the Rajya Sabha demonstrates inherent maturity of Indian politics.
Mr Jaitley said the government is targeting to bring the legislations – the Central GST Bill and the Integrated GST (GST) Bill – before Parliament in the winter session in November. According to Sangma, some states had issues with certain relevant sections of the Bill and later engagements helped in sorting out the differences.
Jaitley said state governments of all political parties were overwhelmingly in support of the GST legislation and the Centre has held dialogues with nearly all of them.
Other than these two impacts, airlines would also need to pay some compliance costs, since the centralised registration system allows them to have one corporate office, while with GST, they would need to register in each state, adding to their costs and paperwork. AUTOS:* Input costs are likely to be reduced after GST, and vehicle manufacturers may expand to more states because of uniformity in taxation.
The aim of the GST is to have one indirect tax on sale and consumption of goods and services in India to prevent inefficiencies in the Central and individual state taxes, which has caused problems such as tax-on-tax.
“The state would gain on the services side since it would get a share in the service tax though it would lose on VAT file”.
The Rajya Sabha on Wednesday night passed the GST Bill. “It’s Centre’s responsibility to bride the gap as the state is already financially crunch”, said Yanamala. The Bill will now go back to Lok Sabha for it to accept the new amendments.
The GST will have a positive impact on growth and tax revenues over the medium term, supporting the sovereign’s credit profile.
Unifying a wide range of taxes under a much simpler system, even if it includes a few different rates and exemptions, would significantly reduce the tax filing costs of corporates and enhance their competitiveness, it said.
” As we see it becomes reality we see market to extend its move and cross the next hurdle at 8800″.
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After hours of debate, lawmakers unanimously voted in favour of introducing the long-awaited Goods and Services Tax (GST) after Prime Minister Narendra Modi’s government reached a consensus with the Congress party and other opposition party members.
