Finance Minister Arun Jaitley today said that doing business would become easier once Goods and Services Tax GST is rolled out and it would help a large body of traders and citizens. States that produce goods have been assured that they will be compensated for five years by the centre for the losses they will incur since the GST is applied on consumption.
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With both the central and state governments monitoring the taxes it will make it hard to evade taxes and raise more money in their coffers.
The Rajya Sabha passed the bill this week and it will now be presented on Monday in the Lok Sabha for amendments to be passed. “State will also be empowered to tax on services” said Amat. Further, a GST Council shall be established as a mechanism to adjudicate any dispute. Once the Bill is approved by Parliament and 50 per cent of state legislatures, the GST Council would have to work out the model GST Bills which will provide operational details of the new tax regime. “Although the implementation of the bill in the financial system is much awaited, we can be hopeful of reaping its benefits in near future”, RS Jalan, managing director of GHCL, which is into textiles and chemicals businesses, told Fibre2Fashion. He said that the objective of the GST Bill is to create a new tax regime which is acceptable to all. Expectations are rife that this bill will see a climate of improved tax compliance across India.
That had resulted in over a dozen taxes, from local sales taxes to excise and Customs, amounting to 20 to 40 per cent of levies on products.
With the aim to achieve the expected GST roll out date of 1 April 2017, the Government of India will now strive to expedite the finalisation of GST law along with its procedural and administrative aspects.
Lawmakers voted late Wednesday in favour of introducing the long-awaited Goods and Services Tax (GST), which will replace a patchwork of central and state levies on goods and services and marks India’s most significant economic reform in decades. “It is a game changing in reforms”. So, the first good thing to come out of GST is expected to be lower prices the consumers will have to pay for goods and services. Corporate giants reacted to the long debate in the parliament about the GST bill, and majority welcomed the decision of the GST.
In conclusion, the key benefits of the GST will be the aid where the retailers create supply chain methods based on transportation models rather than taxation models.
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He was responding to the query raised by Congress MLA Mauvin Godinho, who sought to know whether government has done study of the bill as its implementation will have huge impact on the State’s finances.
