GST will replace a range of central indirect taxes and VAT in states
GN Bureau | April 24, 2015
With an aim to roll it out from next April, finance minister Arun Jaitley on Friday moved the constitution amendment bill for the implementation of the goods and services tax (GST) in the Lok Sabha. The introduction of the bill saw a walkout by Congress members, who wanted it to be sent to the standing committee of finance.
Regional parties such as the All India Anna Dravida Munnetra Kazhagam (AIADMK), Biju Janata Dal and Trinamool Congress also wanted the bill to be sent to the standing committee. Their point was that the current version of the bill is very different from the earlier version. However, this was rejected by Jaitley. He said the bill has seen extensive deliberations involving the standing committee of finance, empowered committee of state finance ministers and the Centre over the last few years.
The bill will be debated next week as opposition members sought more time to move any amendments.
Jaitley said GST will simplify and harmonize the indirect tax structure, reduce cost of production and inflation in the economy and ensure India becomes a common seamless market. The GST is unlikely to lead in any major revenue loss for the states, he claimed.
“The constitution amendment bill for GST has seen the most extensive debate since 1950s. Nobody has the monopoly to stop the growth of the country. The UPA (United Progressive Alliance) should start backing legislations that itself has introduced,” said Jaitley. The GST’s implementation will increase gross domestic product (GDP) growth by 1-2 percentage points, the finance minister said.
What is GST?
The goods and services tax will subsumes various central indirect taxes, including the central excise duty, countervailing duty, service tax and states taxes like value added tax (VAT), octroi and entry tax, luxury tax.
It will make legislation on the taxation of goods and services a concurrent power of the centre and the states.
It will shift taxation from the sale or purchase of goods to the supply of goods or services.
The bill seeks to establish a GST council and it will decide which taxes levied by the centre, states and local bodies will go into the GST; which goods and services will be subjected to GST; and the basis and the rates at which GST will be applied resolution of disputes.
The centre will levy an additional one per cent tax on the supply of goods in the course of inter-state trade, which will go to the State for two years or till when the GST council decides.
Parliament can decide on compensating states for up to a five-year period if States incur losses by implementation of GST.
On May 23 this year, the ministry of environment issued ‘Rules on prevention of cruelty to animals (regulation of livestock market)’ with the purported aim of regulating animal markets. When one reads the rules – notwithstanding the lame efforts from union ministers to issue clarificati
BEML, a mini ratna category-1 enterprise of the defence ministry, has set a target of using 100 percent renewable energy for its own consumption. In this connection, BEML’s 9 MW Windmill Park installed at Bagalkot District in Karnataka was recently
Bharat Heavy Electricals Limited (BHEL), a Maharatna enterprise, has recorded nearly 14 percent growth in its intellectual capital in 2016-17 fiscal. During the year, a record 508 patents and copyrights were filed by the company, translating into filing of nearly two patents/copyrights
National Aluminium Company Limited (NALCO) has joined hands with the Confederation of Indian Industries (CII), Odisha, to organise outreach programmes for industries and other stakeholders on GST implementation. Series of interactive programmes are being
Taking prime minister Narendra Modi’s vision of ‘Housing for all by 2022’ forward, Employees` Provident Fund Organisation (EPFO) has amended the EPF Scheme, 1952 to provide assistance in acquiring affordable houses to the EPF members by allowing withdrawal from PF to
IndianOil is currently transporting bulk LPG from Mangalore to various LPG bottling plants in north Kerala through about 100 bullet trucks every day, which ply on narrow highways. A pipeline connecting the proposed LPG import terminal to Kochi Refineries Limited and the LPG bottling plants at Udayamperoo