Meghalaya will be benefited through the Goods and Services Tax (GST) regime which is likely to be implemented on July 1, Taxation Minister Zenith M. Sangma said on Tuesday.
"Destination-based consuming states like Meghalaya will benefit from the GST implementation," he informed the state assembly during Question Hour.
The final decision on the implementation of the GST regime in the state will be taken by the GST Council.
"The GST will be one of the most important indirect tax reforms in India which will replace the multitude of indirect taxes presently being levied by the Centre and the states like excise duty, service tax, special additional duty of customs, value added tax, central sales tax, and luxury tax," Sangma said.
"The GST will remove the inherent weaknesses present in the current indirect taxation system and will remove the cascading effect on prices of goods and services due to the tax on tax."
Replying to a query raised by Congress legislator Winnerson D. Sangma, the Taxation Minister said the tax on various goods which were levied at present ranging from 3 to 9 per cent is fixed at 5 per cent, 9 to 15 per cent is fixed at 12 per cent, and 15 to 21 per cent is fixed at 18 per cent.
Sangma said goods being taxed above 21 per cent will be taxed at 28 per cent.
He said extra cess will be levied on luxury high-end commodities and cess has been fixed up to a maximum ceiling of 15 per cent.