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.
Yield gaps in wheat production in India can be countered with an earlier sowing date, says a University of Michigan researcher. Using a new way to measure wheat yields, Meha Jain, assistant professor at the U-M School for Environment and Sustainability, found that the wheat yie
Kharpariya village, about 50 km from the headquarters town of Madhya Pradesh’s Mandla district, is like many villages in the region, home to the Baiga, deemed a particularly vulnerable tribal group (PVTG) for whom permanent contraception methods are banned to prevent extinction. However, care for p
Somabhai Modi says he remembers only one occasion when he offered his younger brother prime minister Narendra Modi advice regarding work. This, he says, was when Modi was chief minister of Gujarat. After one of his weekly grievance redressal sessions, the then chief minister had enquired after the well-b
Should ration cards not linked to Aadhaar be rendered ineligible?
INS Kiltan, the third anti-submarine warfare (ASW) stealth corvette built under project 28 (Kamorta class), was commissioned into the Indian Navy by defence minister Nirmala Sitharaman at the naval dockyard in Visakhapatnam. The anti-submarine warfare stealth corvet
Maharatna enterprise, Steel Authority of India Ltd. (SAIL) has supplied defence grade micro-alloyed grade of steel (DMR 249A) steel plates for the indigenously built anti-submarine warfare (ASW) stealth corvette INS-Kiltan commissioned into Indian Navy. SAIL’s integ