GST to be simple with 1 pct addl tax removal, say experts
01/08/2016 00:46
According to tax experts, the proposed national sales tax or the GST stands simplified with aberrations removed as the government dropping the contentious 1 per cent additional inter-state tax, said the PTI report.
Ahead of Parliament considering the biggest indirect tax reform measure since independence, the government has met a key opposition demand of scrapping 1 per cent additional tax on inter-state movement of goods. The government has also agreed to compensate states for any revenue losses for five years, added the media reports.
Commenting on the development, BMR & Associates LLP, Partner, Mahesh Jaising said that, the tax process/system under GST would stand simplified with the government's decision to do away with 1 per cent additional tax on interstate supplies....Tax would have resulted in a cascading tax on interstate supplies, resulting in an otherwise not so pure GST and would have also driven companies to consider the same while making warehousing/logistics decisions.
The GST seeks to replace a slew of Centre taxes and levies in 29 states, transforming the nation into a customs union.
Analysts believe the Goods and Services Tax could boost the country’s economic growth by up to 2 percentage points.
Commenting on the matter, Sachin Menon Partner and Head, Indirect Tax at KPMG, said that the changes made in the GST Bill shows the government’s commitment to introduce GST.
01/08/2016 00:46
According to tax experts, the proposed national sales tax or the GST stands simplified with aberrations removed as the government dropping the contentious 1 per cent additional inter-state tax, said the PTI report.
Ahead of Parliament considering the biggest indirect tax reform measure since independence, the government has met a key opposition demand of scrapping 1 per cent additional tax on inter-state movement of goods. The government has also agreed to compensate states for any revenue losses for five years, added the media reports.
Commenting on the development, BMR & Associates LLP, Partner, Mahesh Jaising said that, the tax process/system under GST would stand simplified with the government's decision to do away with 1 per cent additional tax on interstate supplies....Tax would have resulted in a cascading tax on interstate supplies, resulting in an otherwise not so pure GST and would have also driven companies to consider the same while making warehousing/logistics decisions.
The GST seeks to replace a slew of Centre taxes and levies in 29 states, transforming the nation into a customs union.
Analysts believe the Goods and Services Tax could boost the country’s economic growth by up to 2 percentage points.
Commenting on the matter, Sachin Menon Partner and Head, Indirect Tax at KPMG, said that the changes made in the GST Bill shows the government’s commitment to introduce GST.
