Contact Your Financial
Adviser Money Making MC
8Th Aug 2016
Without
delving into specifics on the taxation rate under the Goods and
Services Tax (GST) regime, Finance Minister Arun Jaitley here on
Monday said it will be worked out by the GST Council.
GST
rate was earlier suggested at 18 per cent by Chief Economic Adviser
Arvind Subramanian.
“The
GST Council will work on the functional modalities. The rate of
taxation will also be determined there,” Jaitley said initiating
the discussion on the 122nd constitution amendment bill in the Lok
Sabha.
The
constitution amendment bill is an enabling measure which will pave
the way for the GST regime.The Total Investment & Insurance
Solutions
After
its passage in the Lower House, which is a given as the government
enjoys a clear majority in the Lok Sabha, three laws will need to be
prepared for GST.The Total Investment & Insurance Solutions
“We
will have to prepare three more laws. After ratification by states,
the draft will have to be prepared by GST Council. The two laws on
inter-state GST and central GST will have to come before the
Parliament. The state GST will be passed by various state
assemblies,” Jaitley said.
Since
GST will be the responsibility of the Centre and states both, the
government wanted to have a larger consensus on it, he said.
“There
has been a wide consensus. A large number of political parties have
come forward in its support,” Jaitley said.
The
Rajya Sabha had last week unanimously passed the Constitution
amendment bill to pave the way for the introduction of a pan-India
Goods and Services Tax regime.The Total Investment & Insurance
Solutions
The
upper house passed what is called the Constitution (One Hundred and
Twenty-Second Amendment) Bill, 2014, with 203 ayes in the final
voting. The AIADMK staged a walk-out before the bill was passed in
the upper house.The Total Investment & Insurance Solutions
The
government had moved amendments to the bill earlier passed by the Lok
Sabha to accommodate some concerns of opposition parties.
The
government has removed the one per cent additional levy and agreed to
compensate for any loss of revenue to the states for next five years.
"There
was a delay, but most of the political parties came on one platform.
After a long time, after efforts which continued for a number of
years, finally a consensus was formed," he said. Initially, the
GST was supposed to be applicable from April 1, 2010.
The
Finance Minister said that after the GST comes into place the tax
base is likely to increase as it will improve ease of doing business
and mitigate tax evasion and tax cascading effect.The Total
Investment & Insurance Solutions
No comments:
Post a Comment