Monday, December 1, 2014

Jaitley keen to introduce GST bill in winter session

Finance Minister Arun Jaitley on Monday expressed hope that the much-awaited GST Bill, which provides for a uniform indirect tax structure, would be introduced in the current winter session of Parliament.
“We will try and introduce GST (Goods and Services Tax) Bill in this session...GST Bill would be taken up by the Cabinet after Empowered Committee (of state finance Minister) meeting on December 12,” he said here.
The government has proposed to implement GST from April 1, 2016, and the new Finance Commission may be set up ahead of its schedule to look into the issues related to the new indirect tax regime.
Finance Minister Arun Jaitley addressing a workshop in New Delhi on Monday. Photo: Sandeep Saxena
The GST will subsume indirect taxes like excise duty and service tax at the central level and VAT on the states front, besides local levies.
There are differences between the Centre and states on some issues with regard to the implementation of GST that includes the revenue neutral rate and keeping petroleum, liquor out of the ambit.
While a sub-committee on GST has suggested that the revenue neutral rate of GST be pegged at about 27 per cent, the states are yet to decide on it.
It had suggested states GST at 13.91 per cent and Central GST at 12.77 per cent.
Besides, states have been demanding that petroleum, alcohol and tobacco should be kept out of the purview of GST.
The GST Constitutional Amendment Bill, which was introduced in the Lok Sabha in 2011, had lapsed and the NDA government will be required to come up with a fresh bill.
The GST rollout has missed several deadlines because of lack of consensus among states over certain crucial issues on the new tax regime.

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