GST to bring biggest business reform: Expert
‘GST – Revitalising Indian Indirect Taxation’ organised by Bharat Chamber of Commerce (BCC) on Friday, got an unanimous consensus – it will bring uniformity, as more than 17 indirect taxes will be in one bucket.
“It will bring 2 per cent GDP growth,” said Bimal Jain, a tax expert. However, S K Panda, the chief commissioner of service tax – Kolkata Zone said the draft GST model is undergoing changes. The law will be transparent and best of its kind.
“We have sent 65 issues regarding the change in draft GST. I will welcome suggestion from trade fraternity. Their suggestions will be sent to the centre for discussion,” said Panda.
The experts agreed on the point that it is going to be a big game changer and under the proposed GST format, all the major taxes levied under the indirect taxation (central excise, service tax, VAT or CST) will be brought under the ambit of GST.
The prevailing concepts of manufacturing of goods, sale of goods would no longer be relevant as tax would be levied on supply of goods.
On June 14, the government had put the model GST Law on public domain after getting the in-principal nod from the empowered committee of state finance ministers and the Rajya Sabha has unanimously passed the constitution (122nd Amendment) Bill, 2014 on GST (known as GST Bill) on August 3.
The amendment includes the drop of 1 per cent additional tax on inter-state supply of goods, full compensation to the states for any revenue loss for a period of 5 years. “We have to remember that government is trying to bring out the best law. Only 10-15 people are busy framing the law. It is really a herculean task, not easy to study the taxes of so many states. The model GST law provides an insight on the governing provisions regarding levy and collection of GST,” Panda added.
“GST is a seamless tax-credits throughout the value-chain across the boundaries of the states, would ensure that there is minimal cascading of taxes. This will also reduce the hidden costs of doing business,” Jain said.
“There is no doubt that the centre and the revenue officials will need to make many important practical moves during the few months left before the roll out of GST,” said Rakesh Jain, president of Bharat Chamber of Commerce.