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Cabinet to take up GST-Network proposal
April, 12th 2012

The union cabinet is on Thursday likely to take up a proposal for creation of an IT platform to integrate central and state indirect taxes regime and set the stage for goods and services tax(GST). The cabinet is also expected to take up a proposal to extend government's support for pension scheme for unorganised sector to five years from three years.

States had given their in-principle nod to launch the IT framework called GST- Network in August last year.

A common IT framework will allow traders all over the country to use their permanent account number, or PAN, as the tax identification number for payment of all direct and indirect taxes. The move will not only benefit taxpayers but also allow tax authorities to keep a tab on transactions more effectively by linking it with other tax payments.

The GST-N is being proposed to be created as a special purpose vehicle in which the centre, state governments and private sector will hold stake. IT infrastructure is crucial for the success of the proposed GST, which will replace a plethora of indirect taxes including excise duty, service tax, and value-added tax.

The 'Swavalamban' scheme of the government encourages unorganized sector workers to save for retirement by making acontribution to the NPS (New pension scheme) of such a worker if he contributed least Rs 1,000 to the tier-1 account, which can be withdrawn only at retirement. The government will contribute Rs 1,000 to every year for four years ending 2013-14.

 
 
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