Planning Commission Deputy Chairman Montek Singh Ahluwalia stressing on the need to bring in Goods and Services Tax (GST), has exuded confidence that whoever forms the next government would be in a position to implement key reforms, including the GST.
GST, the proposed new indirect tax regime and one of the biggest taxation reforms in India will replace existing state and federal levies such as excise duty, service tax and value-added tax (VAT) and will integrate State economies and boost overall growth. Under GST, the taxation burden will be divided equitably between manufacturing and services, through a lower tax rate by increasing the tax base and minimizing exemptions.
The GST rollout has missed several deadlines on account of differences over the contentious issues of central sales tax compensation and the design of the GST structure between the states and the Centre. Initially it was scheduled to be launched in April 2010, but since then there was no political consensus.Recently, BJP’s prime ministerial candidate Narendra Modi had said that his party was in favour of bringing in the GST but claimed it was the Central government that had not done the preparation required for its implementation.
No comments:
Post a Comment