Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: VAT RATES :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: TDS :: form 3cd :: empanelment :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: VAT Audit :: ACCOUNTING STANDARDS
 
 
« Service Tax »
 Indian GST is significantly unique, but is it better?
 GST example of national integration
 6 reasons you need not fear the GST regime
 Tax return filing extension on GST may not be enough
 GST: ‘Tech readiness, tax administration key challenges’
 GST return filing rules relaxed for Jul-Aug, July 1 rollout
 GST Council gives return filing breather to India Inc for 2 months
 All eyes on 18 June as GST Council meets to iron out niggling issues
 GST Council's June18 meet to finalise e-way bill, anti-profiteering rules
 Valuation of Tax liabilities Under GST Regime
 Govt to go soft on GST monitoring for a few months, let traders settle down

Gujarat government opposes Goods and Services Tax
July, 03rd 2015

The Gujarat government has objected to the proposed formula for sharing with states the revenue that would be earned as Goods and Services Tax (GST). The central government has already announced that it will implement GST from April 2016.

Gujarat's main objection is that as it is a manufacturing state, it will suffer major loss of revenue under the proposed formula which follows a destination-based consumption tax model. The state has said that it will directly lose 2 per cent share in Central Sales Tax (CST) as well as income from other taxes.

Sources in the state government said that the central government has, prime facie, agreed to compensate Gujarat with 1 per cent additional tax revenue in addition to the uniform GST share, but only for two years. The state government, however, has demanded a larger share and stated that two years of compensation is not enough.

The Centre's argument that the states will get additional benefit of service tax is not convincing as there is no clarity on it. (Currently, service tax is entirely with the Centre.) Gujarat has a good service industry but it cannot match the tax income from the manufacturing sector, said the sources in the state government.

At present state's average income from value added tax (VAT) and other state taxes is around Rs 62,000 crore per annum —VAT alone Rs45,000 crore — and its share in central taxes is around Rs 14,000 crore. The state government's concern is to get around Rs 76,000 crore with at least 20 per cent per annum growth in tax revenue.

A senior official of the state government involved in negotiations with the Centre over GST said: "Our major sources of income are VAT and CST but in a consumption-oriented tax system, Gujarat may lose its current income and may not be able to achieve its revenue growth projections."

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Reengineering Software Re-engineering Software Reverse Engineering Software Reverse Development Software Change Modulation Software Conversion Software Re-creation Software Re-development

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