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GST implementation will help economy grow: Experts
05
Aug '16
People across the spectrum from manufacturers to exporters to retailers are unanimous in welcoming the passage of GST Bill in Rajya Sabha and are hopeful that implementation of the tax reform will help the Indian economy grow.
 
The Constitutional (122nd Amendment) Bill that will enable the Goods and Services Tax (GST) gives concurrent taxation powers to both the Centre and states. This implies that the Centre will levy a central GST (CGST), while states will levy a state GST (SGST). For goods and services that pass through several states, or imports, the Centre will levy another tax, the Integrated GST (IGST). 
 
The Bill, which has previously been passed by the Lok Sabha, was passed in the upper house after the government proposed amendments to the Bill. The amendments delete the provision of additional tax up to 1 per cent on inter-state trade. The amendments also state that Parliament shall, by law, provide for compensation to states for any loss of revenues, for a period which may extend to five years. Further, a GST Council shall be established as a mechanism to adjudicate any dispute. The Bill will now go back to Lok Sabha for it to accept the new amendments.
 
“The clearance of the much awaited GST bill in Rajya Sabha with a thumping majority will facilitate in the ease of doing business in the country. Although the implementation of the bill in the financial system is much awaited, we can be hopeful of reaping its benefits in near future,” RS Jalan, managing director of GHCL, which is into textiles and chemicals businesses, told Fibre2Fashion.
 
“GST will facilitate a uniform tax levied on goods and services across the country. Expectations are rife that this bill will see a climate of improved tax compliance across India. There will be a reasonable shift in tax burden from production to consumption as GST is being considered as a consumption tax. GST will ensure that India as a country will emerge as a common market with no burden of other indirect taxes and plethora of levies,” he added.
 
Stating that the GST's passage in Rajya Sabha will pave way for the growth of economy and exports, Tirupur Exporters' Association (TEA) president A. Sakthivel said, “We are happy to note that at last, consensus has been built to pass the prestigious GST Bill, a major reform in the indirect tax system in independent India. It is a game changing in reforms.”
 
“The industries and the people will get benefit out of the introduction of GST,” he said and requested finance minister Arun Jaitley to address any issues that may arise in exports after implementation of the GST system.
 
Meanwhile, the Confederation of All India Traders (CAIT) has expressed satisfaction over the declaration that there will be single return for both CGST & SGST and there will not be any dual control of authority under the GST tax regime. “Such a procedure will certainly simplify the taxation regime to a great extent and will encourage voluntary compliance which in turn will culminate into widening of tax base,” CAIT said.
 
CAIT urged the Union finance minister to include the representatives of trade and industry in GST Council for making them partners in decision making process. It has also urged that first three years after GST implementation should be declared as transformation period and barring habitual offenders or tax evaders, rest of the traders may not be penalised for defaults. (RKS)

Fibre2Fashion News Desk – India


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