Published: Sun, August 07, 2016
Economy | By Melissa Porter

BJP urges party CMs to ratify GST bill soon

"What happened yesterday was passing the Constitution Amendment Bill to enable the GST Bill to come", CPI (M) General Secretary Sitaram Yechury said here.

It further said, "The net effect is that the seller or service provider charges GST but does not retain it, and pays GST but receives a credit for it, making him a pseudo collecting agent for the government".

Setting a target of April 1, 2017 for rollout of the Goods and Services Tax, the government on Thursday unveiled a detailed roadmap for its implementation and said it is aiming for an "optimal" rate of taxation though the final decision will be taken by the GST Council. "It facilitates creation of a national tax standard with consumers paying uniform rates of GST, thereby enabling flow of seamless credit across the supply chain".

Adhia also told a news conference that it would be "premature" to expect the GST's standard rate to be 18 percent, as proposed by the government's own chief economic adviser, saying this would imply significant revenue losses. This, he said, was possible since most of the state legislatures are in session at present.

Central excise duty and state VAT taken together added up to 27 per cent now.

CPI (M) today sought to downplay the euphoria over the GST and said many crucial issues needed to be resolved before the tax reform measure was rolled out.

"I hope in true spirit of cooperative federalism you will take initiative to abide by the consensus that we all had arrived at, together", Isaac said in the letter.

India's current tax system has always been recognized as a major drag on the economy. "But even in the first instance it will come down", Jaitley said.

The Bill, which was cleared by the Rajya Sabha on Wednesday night, is likely to be approved by the Lok Sabha this week after incorporating changes made by the Upper House.

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