“There are four slabs and effectively five slabs, it is one of the most complicated GST”, he added.
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The pressing of buttons launched the GST and a two-minute video showcasing India’s diverse culture and tradition. The states are giving up arguably much of their most important power: to impose taxes.
He was replying to a question at the Aaj Tak GST Conclave on how smooth he expected the transition into the new indirect tax regime.
GST, which works as a tax on consumption, subsumes Central levies, including excise duty and service tax, as well as State value-added tax and levies such as octroi. He said that he is sure that GST will not have any inflationary impact.
The minister was reiterating Finance Minister Arun Jaitley’s statement yesterday that the GST had been formed with the consensus of the states and a consideration of their suggestions. According to the New World Wealth report, our country is ranked seventh in the list of top wealthiest countries in the world but on a per capita basis, the average Indian is quite poor. Through this people will gain from the indirect benefits.
In solidarity with the disability rights groups, Shishu Sarothi also held a small protest this afternoon to demand of the government to roll back GST on disability goods. “The credit for the new law does not go to one party or one government but was a shared legacy of all”, he said. It is the result of our combined efforts.
Parliament’s Central Hall has witnessed such a function only on three occasions earlier.
The historic overhaul of the existing tax legislation was carried out at a special midnight session of parliament under the leadership of Prime Minister Modi and President Pranab Mukherjee.
Former finance minister Yashwant Sinha as also Vijay Kelkar, who had first mooted the concept of GST in a report to finance ministry way back in 2003, were also present at the launch.
“In a short while, India will move towards a new direction”. As part of the empowered committee, I had the opportunity to meet the chief ministers of Gujarat and Maharashtra, among others. “It has pleasantly surprised everybody by completing its task on time”, the President said.
“The Goods & Services Tax is a transformational structural reform which will have multiple benefits – the creation of a national market; enhanced ease of doing business; greater productivity & efficiency; and improved tax compliance”.
The new tax will require firms to upload their invoices every month to a portal that will match them with those of their suppliers or vendors. From that point, convincing the Congress party to agree for the crucial constitutional amendment leading to GST roll out, has been a big political victory for the Modi camp.
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Prime Minister Narendra Modi is set to speak at the function in parliament, which will be attended by 1,000 guests including top leaders and industrialists. “The government has exempted Healthcare services from levy of GST and therefore there will be no taxes paid by patients for services rendered by hospitals”.
