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Tax to bring transparency, benefit companies operating in state, says Gujarat CM Vijay Rupani
January, 13th 2017

At a time when some states are in disagreement with the Centre on the tax revenue sharing percentage, Gujarat is prepared to roll out goods and services tax (GST), chief minister Vijay Rupani said Wednesday.

“GST will bring transparency and growth to the country and we are resolute to roll out GST in the state to help all the companies present here,” Rupani said, speaking at a GST seminar during the eighth edition of Vibrant Gujarat Summit.

India is moving to a centralized indirect tax regime where most of the current indirect taxes would be obsolete.

“Gujarat may be one of the few states that are prepared for GST,” said Najib Shah, chairman, Central Board of Excise and Customs.

One of the biggest challenges for the states as well as the companies present in India is to change the information technology (IT) systems. Many companies are depending on their IT providers and tax consultants for the same.

“Some of the states have decided to go on their own with GST and setting up IT infrastructure will be a challenge for many states,” said Shah.

Many states are not coming on board with the GST. Amit Mitra, West Bengal finance minister had last week walked out of a centre-state-pre-budget meeting.

This at a time when GST is set to benefit many consuming states who have less manufacturing facilities including West Bengal.

The government is required to implement GST by September 16, or there would be no tax law altogether after that since the validity of the recently passed GST bill lapses by then, point out experts. However, there are a couple of steps the government can take. The same goes for the states. If the states do not strike an agreement with the centre they too can lose their right collect state levies.

Speaking at the event finance minister Arun Jaitley said that several steps by the government including renegotiating tax treaties, demonetization and GST are towards one goal, growth.

Even as the logjam on GST continue many companies are already preparing for the tax regime. “GST Council has already finalized the structural and transitional provisions of the modest GST law which has paved the way for passing of the law by the parliament in the forthcoming session and industry is hopeful of rolling out GST at the earliest possible,” said Naushad Forbes, president Confederation of Indian Industry (CII).

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