GST rates will have no inflationary impact: Jaitley
- Author: Zachary Reyes Mar 29, 2017,
Mar 29, 2017, 19:59
Finance minister Arun Jaitley is expected to introduce four bills related to GST in Parliament on Monday.
Four bills aimed at rolling out the much-awaited Goods and Services Tax (GST) and usher in landmark tax reforms in the country were tabled in the Lok Sabha today.
In the meeting, representatives of sectors such as shipping and ports, gems and jewellery, petroleum, agriculture and fertilisers and entertainment gave their representations on GST (goods and services tax) to Jaitley.
The GST Council, comprising Union Finance Minister and state representatives, had made a decision to set up a compensation fund by levying cess on demerit and luxury goods.
Union Minister for Finance and Corporate Affairs Arun Jaitley at GST Council Meeting, at Vigyan Bhawan in New Delhi on Thursday. "We believe that the majority in Parliament can never be used for subterfuge against the Constitution and the law by unleashing a new era of unbridled and unchecked tax terrorism and raid raj".
The fourth law introduced is on Union Territory GST or UTGST for UTs like Chandigarh and Daman and Diu which do not have assemblies.
Another mirror legislation of CGST, called state-GST, will amalgamate all state taxes like VAT, will be levied by states and has to be approved by all state legislatures.
Moily said that clarity still eludes any of the provisions of the bill including taxation of special economic zones and the way the anti-profiteering mechanism will work.
These four Bills relate to Central GST; iGST; compensation to States; and GST implementation in Union Territories. Jaitley last week had said the GST Council has cleared all the major hurdles for the GST Bill.
The government has proposed an amendment in the Finance Act, 2017, to allow IT officials to not even to disclose the reasons for conducting search and seizure, he added.
During the debate hour, Jaitley said that states have pooled in their sovereignty into the GST council, and Centre has done the same. "It is a kind of federal contract with consensus", he said.
It would consist of a four-tier tax structure of 5, 12, 18 and 28 percent, though there would be a provision to set the peak rate at 40 percent to deal with any financial emergencies. "This means that there will be a seamless integration of goods and service transaction across the states which will have a positive impact at different stages of the value chain", Jasmine Singh, head, industrial & logistics services - India, CBRE South Asia Pvt Ltd, exclusively told Fibre2Fashion.
He termed the tabling of the bills in Parliament as an important milestone in the implementation of the GST.