GST bill passed in the Lok Sabha, smooth implementation a must

Remigio Civitarese
Marzo 31, 2017

The House had allotted seven hours for holding talks on crucial bills that seek to trigger biggest ever tax reforms.

He said the GST Council, comprising Finance Ministers of Union and states, had agreed to take a decision on bringing real estate within the ambit of the new tax regime within a year of its rollout. The Bill had to undergo a marathon exercise of state's concurrence.

Lok Sabha is not bound by any law to include amendments in a Money Bill proposed by the upper house of the Parliament.

After GST is rolled-out, employees will have to pay taxes on freebies - food - and services - cab - provided by employers.

The post India's parliament passes key tax reform bills appeared first on The Independent Uganda:. The Congress also pointed out that the slogan of "one nation, one tax" is a myth as there will be too many tax rates.

The Centre has termed the approval of four supplementary bills related to the Goods and Service Tax (GST) in the Lok Sabha as historic and stated that the passage of the bills would bring India under "one country, one tax" regime. "Long awaited moment", he said in a tweet.

Speaking in favour of multiple tax rates, Jaitley said that taxes must be considered according to the type of commodities. Similarly, hawai chappal and a luxury auto can not have the same tax rates.

At the Council meetings, the Centre and the States finalise draft rules for various aspects of the GST and review the preparedness for the roll out of the new tax regime. Also an Integrated Goods and Services tax will be collected by the Center on the supply of goods and services among the various inter-states.

The GST will subsume excise, service tax and other local levies.

On top of the highest slab, a cess will be imposed on luxury cars, soft drinks, tobacco products, pan masala and coal to compensate states for potential revenue loss during the first five years of implementation. The UTGST will deal with union territory GST law, territorial waters beyond, and would incorporate laws in SGST law.

Countering the opposition's objection to a GST with multiple rate slabs, the Finance Minister said, "If there are no multiple rates, it will become a highly regressive tax..." The work on putting various goods and services in the different slabs is slated to begin next month. The cess on sin and luxury goods has been decided at 12%, but the peak rate of cess could be 15%.

Jaitley said as keeping it as tax would have resulted some portion of the money going to devolution.

AIADMK's TG Venkatesh Babu indicated that the party had got over its initial reservations over the move, as Tamil Nadu was a manufacturing sate.

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