The Parliament has taken up the GST Constitutional
Amendment Bill for consideration and passage.
Tomorrow when the rate comes, the standard rate should
not be more than 18 percent. [If it is more] we will campaign against
throughout the country," Chidambaram said, before seeking an assurance that the GST Bill will not be passed
as a Money Bill. (A Money Bill does not need the Rajya Sabha's assent.)
The highest rate of GST even in rich countries is
about 16 percent. A high rate will lead to inflation, tax evasion and
an imperfect tax system.
GST is one of the most significant reforms ever undertaken. It will broaden the
tax base, reduce cascading taxes (tax on tax) and boost growth," Jaitley
says.
Arun Jaitley
elaborated upon the design of the GST, stresses upon the need for balancing
federal interests as well as that of the Centre. He also talks about the
features of GST, pointing out that for now, consumable alcohol has been kept
out of its ambit while petroleum products have been zero-rated for the next few
years.
The Finance Minister talked about the history
of the Bill, which was first mooted about a decade back in 2006 by erstwhile FM
P Chidambaram.
Finally, the ambitious goods and services tax (GST) could be
a reality. India's parliament is due to vote on the much-awaited Goods and
Services Tax (GST) bill today. Hailed as the biggest tax reform since
independence, the one-nation-one-tax regime will convert 29 states into a
single market. The implementation of GST from April 1,2017 which was passed
once by parliament and cleared by 50 percent of the state assemblies, will add
2 percentage points to India's GDP, according to economists. The bill was passed
by the Lok Sabha, the lower house of the Indian parliament, last year, but it
has been stuck in the upper house of parliament, or the Rajya Sabha, where PM
Narendra Modi's BJP does not have a majority
GST IMPACT ON VARIOUS
SECTOR:-
1) BANKS -Current
service tax 15% know after GST 18% Negative.
2) CONSUMER STAPLES current tax rate 22% know after GST it's 18% . Positive for
- Asian Paints, Dabur, HUL, EMAMI and NEGATIVE for ITC & UNITED
BEVERIES.
3) CONSUMER DISCRETIONARY current 15% after GST 18% NEGATIVE for Jubilant Food
works, Coffee Day & Restaurant Businesses.
4) MEDIA - current Tax 15% service tax and 7% entertainment Tax by State's know
After GST it will be 18% POSITIVE for DISH TV, VIDEOCON D2H, BIG TV
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