The incidence of the current plethora of indirect taxes on goods is estimated at nearly 25% while services face a tax rate of 10%.
Terming GST an idea whose time has truly come, finance minister Pranab Mukherjee said, It (GST) will re-distribute the burden of taxation equitably between manufacturing and services , bringing about a qualitative change in the tax system.
Mr Mukherjee, an ardent votary of the April 1, 2010, deadline , has in recent days cast doubts on meeting the date.
Timelines have been set for finalising constitutional amendments , drafting legislation and putting in place a robust IT infrastructure , but many states are of the view that there is no need to implement GST from the next fiscal without being fully prepared.
Mr Dasgupta said the GST is expected to reduce the tax burden on goods, create a seamless national market for goods and services, check evasion and enhance tax revenues. However, services could become slightly costlier as states get the power to tax them.
Central taxes such as excise duty, service tax, countervailing duty, special additional duty on Customs, all cesses and surcharges and state taxes, including valueadded tax, sales tax, entertainment tax, luxury tax, tax on lottery, betting and gambling, entry tax and state cesses and surcharges, would be replaced by a GST. Both the Centre and states will have limited flexibility to change the tax rates, providing stability and certainty to trade and industry.
Economic Times, New Delhi, 11-11-2009.
Terming GST an idea whose time has truly come, finance minister Pranab Mukherjee said, It (GST) will re-distribute the burden of taxation equitably between manufacturing and services , bringing about a qualitative change in the tax system.
Mr Mukherjee, an ardent votary of the April 1, 2010, deadline , has in recent days cast doubts on meeting the date.
Timelines have been set for finalising constitutional amendments , drafting legislation and putting in place a robust IT infrastructure , but many states are of the view that there is no need to implement GST from the next fiscal without being fully prepared.
Mr Dasgupta said the GST is expected to reduce the tax burden on goods, create a seamless national market for goods and services, check evasion and enhance tax revenues. However, services could become slightly costlier as states get the power to tax them.
Central taxes such as excise duty, service tax, countervailing duty, special additional duty on Customs, all cesses and surcharges and state taxes, including valueadded tax, sales tax, entertainment tax, luxury tax, tax on lottery, betting and gambling, entry tax and state cesses and surcharges, would be replaced by a GST. Both the Centre and states will have limited flexibility to change the tax rates, providing stability and certainty to trade and industry.
Economic Times, New Delhi, 11-11-2009.
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