GST Bill gets Cabinet nod; likely in Parliament this session

Discussion in 'Economy & Infrastructure' started by Vishwarupa, Dec 18, 2014.

  1. Vishwarupa

    Vishwarupa Senior Member Senior Member

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    Cleared by Cabinet, GST Bill to be taken up in Parliament during Winter Sessionntentofinterest&utm_medium=text&utm_campaign=cppst

    New Delhi: The Constitution Amendment Bill on Goods and Services Tax (GST) is likely to be taken up in the ongoing session of Parliament with the Union Cabinet giving its nod to bring about long-pending indirect tax reforms.
    The Bill was approved by the Cabinet late on Wednesday evening and it is likely to be tabled in the ongoing winter session of Parliament that concludes on December 23, sources said.
    The government aims to roll out the Goods and Services Tax (GST) from April 1, 2016.
    Cleared by Cabinet, GST Bill to be taken up in Parliament during Winter Session
    The government aims to roll out the Goods and Services Tax (GST) from April 1, 2016.
    #gst bill #parliament #cabinet #taxes
    The revised Constitutional Amendment Bill was brought before the Cabinet after the Centre and states reached a consensus on contentious issues, including those related to petroleum product taxation, which were holding up the proposed nation-wide indirect tax regime for about seven years.
    The GST will subsume most of the indirect taxes like excise duty and service tax at the central level and VAT and local levies on the states front.
    The GST Bill was last introduced in the Lok Sabha in 2011 by the then UPA government but lapsed, requiring the new NDA government to come with a new Bill.
    In a compromise deal, the Centre decided to keep petroleum out of GST in return for states agreeing to entry tax being subsumed in the new tax regime.
    On the issue of compensation to states for revenue loss because of subsuming of all indirect taxes in the GST, the Finance Ministry was to seek legal opinion on how it could be accommodated in the Constitution Amendment Bill that it wants to table in the ongoing Winter session of Parliament.
    States, which earn over 50 per cent of their revenues from taxes on petrol and other petro products, wanted it to be out of GST so they could continue with levying different tax rates on these products.
    In the three rounds of talks that held last week, states insisted that the compensation part should be included in the Constitution Amendment Bill. The idea of moving towards the GST was first mooted by the then Finance Minister P Chidambaram in his Budget for 2006-07. Initially, it was proposed that GST would be introduced by April 1, 2010.

    Cleared by Cabinet, GST Bill to be taken up in Parliament during Winter Session - IBNLive
     
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  3. Kshatriya87

    Kshatriya87 Senior Member Senior Member

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    http://economictimes.indiatimes.com...-in-india-world-bank/articleshow/49568864.cms

    GST key reform for creating single market in India: World Bank

    NEW DELHI: The proposed GST law is the most important reform towards creating a single market in India and if it is implemented by April 2016 then its impact will be visible by 2018, the World Bank said today.

    "The GST (Goods and Services Tax) is the single most important tax reform because it is so important for creating one market in India. I continue to believe that the Indian government is committed to get the GST done, hopefully in the Winter Session (of Parliament).

    "...GST will make it easier to pay tax. For example, if it gets introduced by April 2016...realistically speaking you would only see the impact of GST by 2018 as per a survey based methodology," World Bank Country Director in India Onno Ruhl said today.

    He said the GST is very important for the economy and it is a long-term measure. However, it is not the only thing that is going to improve the country's business ranking.

    Ruhl was addressing the media on the occasion of the release of the "Doing Business 2016" ranking in India today.

    As per the new ranking for doing business environment, World Bank has ranked India 130 out of 189 countries. It was ranked 142 in Doing Business 2015.

    Ruhl said India's improved position in the ranking was attributed to many factors of which the new Companies Act and better electricity situation are significant.

    He said the trend of decline has been successfully reversed by India.

    "It is really a good news that on starting a business, on getting an electricity connection, e-filing to taxes, trading across borders, India has already taken actions since May 31," he said.

    However, speaking about the challenges, he said India ranks worst when it comes to getting construction permits done and enforcing contracts.

    "Getting construction permits and enforcing contracts (are the areas) where India is really very close to the very bottom," Ruhl added.

    Among others, the India World Bank head also said that the agency is constantly engaged with the government and suggesting it in its preparation and action plan to improve the business environment.

    Besides, he also stressed that the World Bank will in future will be engaged with the Department of Industrial Policy and Promotion (DIPP), industry bodies CII, FICCI to prepare the state rankings in future as well.

    Ruhl also hoped the government to introduce the Bankruptcy Code in the upcoming winter session of Parliament.

    "Bankruptcy Code is very important, it is an important part of business environment. Our understanding is that the government intends...in the Winter Session. If adopted in the Winter Session it will definitely have a significant positive impact on the business ranking," he added.
     
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  4. Kshatriya87

    Kshatriya87 Senior Member Senior Member

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    http://www.businessworld.in/economy...onsible-gst-fiasco-sinha#sthash.Ihr4Dm87.dpbs

    Rahul Gandhi Responsible For GST Fiasco: Sinha

    Union Minister Jayant Sinha has expressed hope that Goods and Services Tax (GST) will be rolled out from next fiscal even as he held Congress Vice President Rahul Gandhi responsible for creating impediments in the implementation of the taxation reform.

    Regretting at "low" tax payment, the Minister said the Narendra Modi-led government at the Centre, which has a mandate to provide corruption free and transparent regime, had toughened laws to prevent tax evasion and curb black money.

    "We are hoping to implement GST from 2016... but it will be clear in Winter Session of Parliament. Our efforts will be to get it passed," Sinha, the Union minister of state for finance, said on Saturday in Mohali while holding an interactive session with industry representatives from Punjab, Chandigarh, Haryana and Himachal Pradesh.

    Describing GST as "boon" for the economy, Sinha hit out at Congress Vice President Rahul Gandhi for allegedly not allowing the roll out of GST.

    "Why GST is not being implemented. There is only one person in the whole country who has halted the roll out of GST and his name is Rahul Gandhi ji. Rahul Gandhi ji does not want the country to progress... It is sheer injustice on his part (that) if there was voting in Rajya Sabha and it had been allowed for two hours to function then all the votes will be in our favour.

    "But he does not allow to function Rajya Sabha because he knows if Rajya Sabha functions for two hours and there will be voting and then they will be defeated and GST will be passed," he said.

    Sinha also lamented at lesser number of people paying tax in the country, saying it is "quite sad".

    "Our 16 per cent people pay tax in comparison to average 25 per cent people in other countries who pay their due taxes," he said.

    He said that the Centre, led by BJP government, had made laws tougher to curb black money in foreign countries and practice of tax evasion.

    "There is no place to hide for those who indulge in stashing black money abroad. We are enforcing laws strictly to stop tax evasion practice. Our efforts is to move towards cashless economy," he added.

    Disinvestment
    Sinha said that against the Centre's total expenditure of Rs 18 lakh crore, the revenue generation from taxes and other sources like disinvestment is pegged at Rs 12.5 lakh crore with the shortfall of Rs 5.5 lakh crore.

    "Can you run your businesses with such a deficit," he asked industry.

    Sinha, son of former Finance Minister Yashwant Sinha, said there could be three tax rates on different types of goods under GST regime.

    "There will be concessional rate, standards and then luxury rate in GST," he said.

    On bringing petrol and diesel into GST fold, Sinha said that states were not on the same page for bringing fuel under GST.

    "If we keep petrol and diesel items out of GST for two years and there are no revenue losses, then it can be brought under GST regime after two years. As a result of which tax on petrol and diesel in all the state will be uniform," he said.

    He added that there may be a hike in the excise limit of small industry in next Budget.

    Lashing out at previous UPA-led central government, Sinha said not even a single paisa of capital expenditure was incurred in Railways in 10 years of their regime.

    "Our government has targeted to invest Rs 8.5 lakh crore in Railways in next five years," he said.
    - See more at: http://www.businessworld.in/economy...onsible-gst-fiasco-sinha#sthash.Ihr4Dm87.dpuf
     

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