Instead of goods being taxed multiple times at different rates, under the new GST regime goods would be taxed at the point of consumption.
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The much-awaited GST Bill was passed in the Rajya Sabha on the government, putting an end to the decade long back and forth on what is deemed the biggest tax reform in India since 1947.
After getting the Rajya Sabha nod for its “one nation, one tax” idea, the Centre plans to go full throttle to roll it out from the next financial year.
“The Prime Minister will intervene during the debate on the GST Bill in Lok Sabha”, the minister said.
Revenue Secretary Hasmukh Adhia, who was also present in the press conference told reporters that 60 thousand central and state government officials are to be trained on GST laws and IT framework by March next year.
Manish Goenka, president MCC Chamber of Commerce and Industry complimented Centre for bringing in the GST – the landmark tax reform, which would give an instant green signal to growth.
Most of the states would have to call a special session to ratify the Bill, as their Assembly sessions are already over. Responding to the Congress’s jibe of “PM mukth Parliament”, a minister said, “but they ran a PM mukth government”.
Leader of Opposition Narasingh Mishra said: “The GST bill was first introduced by the UPA government”.
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. After deletion of the 1% additional tax on all inter-state supply of goods that was proposed in the original GST Bill passed by the Lower House, the Upper House approved the GST Bill unanimously.
GST, which is expected to be implemented from April 1, 2017, will subsume excise, service tax and other local levies including VAT, octroi.
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On the GST rates, Adhia said it would be premature to expect the GST’s standard rate to be 18 per cent, saying it would imply significant revenue losses.
