sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
Service Tax »
 12 ways to avoid paying more for bank services
 I-T return filing: Income Tax offices, Ayakar Seva Kendras to remain open from March 29-31
 Top 5 money matters you must settle before March 31 From income tax returns to LTCG,
 Steep fines for missing March 31 income tax deadline
 CBEC clears some air on refunds under GST, central excise, service tax laws
 3 key tax changes for senior citizens which will come into effect from April 1, 2018
 Income tax returns (ITR) filing: Not filed returns for 2 years? Beware! Deadline nearing
 All you want to know about HRA: When you can claim and how it is calculated?
 Income Tax Saving: 6 ways to save tax without investing before March 31 tax deadline
 Unnable to file your tax return? Take help of these portals
 Do you know which 80C instruments can help you save tax and carry no future tax liability?

Will India keep its date with single national sales tax? After LS nod, GST stares at other hurdles
May, 07th 2015

Finance ministers from 15 states were meeting Thursday to discuss the next steps for a common goods and services tax (GST), a day after Parliament’s lower house, the Lok Sabha, passed the much-awaited legislation to introduce the proposed tax system.

The two-day meeting in Kerala is crucial as the government of Prime Minister Narendra Modi needs the support of opposition parties to get this landmark amendment to Constitution ratified by the Rajya Sabha and the state assemblies. The government plans to introduce GST from April 1, 2016.

Once adopted, a unified GST can dramatically alter tax administration in a one-shot solution by replacing a string of multi-layered central and local levies such as excise duties, value added tax and octroi into a single unified tax to lower commercial barriers that impede ease of doing business.

However, the ruling coalition of Prime Minister Narendra Modi is in a minority in the upper house of Parliament, the Rajya Sabha, which must endorse the bill with a two-thirds majority. Also, at least half of the state assemblies will have to ratify it before it finally becomes law.

The Congress party, which for years has been championing the need for replacing the layers of local and regional taxes that have caused red-tape, confusion and corruption with a single levy, led a walkout in the Lok Sabha, saying the rejigged bill of its 2011 version was not acceptable until it was examined by a parliamentary panel. The Left and some regional parties have also taken a similar position.

Analysts believe, both the Congress and the Left parties will unlikely vote against the bill, when it comes up for consideration in the Rajya Sabha. Also, the legislation found support from several small parties during the passage of the bill in the lower House. The bill was passed by 352 votes against 37 after the government rejected the opposition demand of referring it to a Standing Committee.

Replying to the debate on the bill in Lok Sabha on Wednesday, finance minister Arun Jaitley said the proposal to reform the indirect taxes has been pending for the last 12 years and his predecessor P Chidambaram also mooted it during UPA rule.

“A bill is not a dancing instrument that it will be jumping from Standing Committee to Standing Committee,” Jaitley said, he said referring to opposition demand to subject the bill to scrutiny of a parliamentary committee.

The key reform initiative has remained stuck for years due to lack of political consensus among states and the Centre and has faced political hurdles as states fear it will rob them of their fiscal powers.

Jaitley allayed states’ concerns that the new tax structure will trigger a drop in revenues for them, adding that it would lower inflation and promote growth in the long run.

The bill offers a compensation package to states for potential revenue loss up to the first five years.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System developers CMS developers Content Management Solutions CMS Solutions CMS India Content Management System India CMS development India Website CMS Website Content Management India Portal CMS India CMS Outsourcing CMS Vendor Complete CMS Custom CMS Services

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions