GST scheduled for July 1 rollout: Jaitley


Team Udayavani, May 8, 2017, 2:46 PM IST

Tokyo: The Goods and Services Tax (GST) is on schedule for implementation fromJuly 1and will not lead to any significant increase in prices of goods although cost of some services may see a marginal hike, Finance Minister Arun Jaitley said today.

Hailed as the biggest tax reform since India’s independence, GST will replace an array of central and state levies with a national sales tax, thereby creating a single market and making it easier to do business in the country.

Addressing CII-Kotak investors’ round table here, Jaitley said that the GST Council, headed by him and comprising representatives of all states, will in the next few days finalise the rates of tax for different goods and services and the country is on track to roll out the simplified indirect tax regime fromJuly 1.
“The current indirect tax structure in India is fairly complicated…those who transacted in either goods or services would have to deal with multiple authorities.

“The whole country was divided into multiple markets. So a free movement of goods and services was not possible. Now, the idea of GST was that let there be just one tax in the country,” Jaitley said. He added that tax rates on goods may go down marginally under the new indirect tax regime while services may see some increase.

The GST Council, which had previously finalised a four- tier tax structure of 5, 12, 18 and 28 per cent, is scheduled to meet next week to put different commodities and services in the decided tax brackets. Demerit and luxury goods will attract the peak tax rate plus a cess. Tax rate closed to the existing incidence of total central and state levies will be chosen as the slab for a good or services.

“As far as goods is concerned, the tax is not likely to increase at all. If at all, it may marginally come down because of the cascading impact not being there and therefore, it is not likely to be inflationary. “As far as services is concerned, obviously, they will go up marginally and therefore, there will be some impact on this. So, goods and services may react a little differently,” Jaitley said.

Asked if GST would stoke inflation, he said: “I don’t anticipate this to happen significantly. If at all, this may be a transient impact.” At a separate interactive session on ‘India’s Business Environment: Reforms and Opportunities’ organised by CII, Indian Embassy and Japan Chamber of Commerce, he said after the Constitution was amended by Parliament and supporting legislations passed, state legislatures are approving the respective State GST law.

“Currently, that process is on. I see no difficulty in it,” he said adding GST rules have been framed and tax rates will be fixed at the GST Council meeting onMay 18 and 19. Jaitley sees no problems in rolling out GST fromJuly 1. “Hopefully, fromJuly 1,one of the largest tax reforms in India since Independence — a simpler, more efficient and cleaner taxation system would be introduced in the country which itself would ease the very processes of doing business,” he said.

At the investors’ meet, he said there would be no cascading impact of tax on tax under GST. “GST being a more efficient tax, evasion will become difficult. In the current system, there is large evasion,” he said. Jaitley said the constitutional amendment gives time tillSeptember 15for introduction of GST but the target date has been kept atJuly 1. “So, we have a cushion of two-and-a-half months but it looks like we will be able to begin on schedule,” he said.

Also, a simple IT network has been put in place and there is no multiple forms for filing tax returns, he said. GST would be a “transformational” system, he said, adding “there could be some small hiccups in the beginning but I think it’s understandable. We will be able to get over this”. GST with a far more efficient system, Jaitley said, that will increase trade, tax collection and improve ease of doing business.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

‘Viksit Bharat Young Leaders’ Dialogue’ to be held in Delhi on January 11-12: PM Modi

‘Viksit Bharat Young Leaders’ Dialogue’ to be held in Delhi on January 11-12: PM Modi

Chitradurga Renukaswamy Murder Case: Photos from crime scene implicate Actor Darshan and others

7 more arrested in Manipur for arson at legislators’ residences

A 4.45 billion-year-old crystal from Mars reveals the planet had water from the beginning

Not possible to even reach Everest base camp without guidance of Sherpas: actor Manisha Koirala

Ton-up Jaiswal takes India to 275/1 at lunch against Australia on day 3 of opening Test

Related Articles More

Mcap of 8 of top-10 most-valued domestic firms jumps Rs 1.55 lakh cr; HDFC Bank, TCS sparkle

Myntra pilots foray into quick commerce with ‘M-Now’ in select locations of Bengaluru

Never entered into pact to operate airport in Kenya: Adani

None of Adani portfolio cos subject to any legal case: Group CFO on promoter indictment in US

Binny Bansal steps down from board of PhonePe

MUST WATCH

Prakash Belawadi

Naxal Leader Vikram Gowda

Christmas Cake Fruit Mixing

DK Shivakumar

Rose Cultivation


Latest Additions

‘Viksit Bharat Young Leaders’ Dialogue’ to be held in Delhi on January 11-12: PM Modi

All-party meet ahead of Parliament session underway, Cong demands discussion on Adani

‘Viksit Bharat Young Leaders’ Dialogue’ to be held in Delhi on January 11-12: PM Modi

Puri Jagannath temple administration urges ASI to start repair work of Ratna Bhandar

Chitradurga Renukaswamy Murder Case: Photos from crime scene implicate Actor Darshan and others

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.