Published: Sat, May 20, 2017
Business | By Max Garcia

GST is major financial reform

GST is major financial reform

A workshop on GST was held for legislators ahead of the two-day special session scheduled to begin on Thursday.

Patnaik further said that the enactment of the State Goods and Services Tax will mark the beginning of a journey.

On April 6, Parliament passed four legislations, paving the way for the rollout of the GST from July. The GST rate on coal has been fixed at 5 per cent, down from 11.69 per cent of tax now charged.

Around 1,000 security personnel will be pressed into service for sanitising the conference venue and the hotels the officials will be staying. In GST, the curtailment of layers of movement of goods is inevitable. France was the first country to implement the GST in 1954. China implemented GST in 1994 while Russian Federation did it in 1991.

"The GST will bring about comprehensive reform of the indirect tax regime of the country".

Smalls cars will be charged one per cent cess on top of 28 per cent tax, while mid-sized cars will attract three per cent cess and luxury cars 15 per cent on top of peak rates. Besides, for demerit and luxury goods, a cess will be levied on top of the peak rate.

Considering the massive impact of GST the operators have already initiated the registration process involving migration to the GST regime, the COAI said. "We are sure that it would benefit both the consumers and the business community and help the economy to grow", said National Academy of Customs Excise and Narcotics (NACEN) Director General and GST expert PK Das.

The exemption list is supposed to include common use items like salt, primary produce, fruits and vegetables, flour, salt, milk, eggs, tea, coffee and prasad sold at temples. On top of that there are over 60 services, like religious pilgrimage, healthcare, education, skill development, journalistic activities, which are exempt from service tax. "If the revenue collection, post GST implementation would not be 14 per cent more than the previous year, the Centre would compensate the remaining amount to the state from GST compensation fund", said finance secretary T K Pandey.

Like this: