STOCK MARKET BSE NSE

Soon, GST in India: Sushil Modi

BANGALORE: Deputy Chief Minister of Bihar and Chairperson of Empowered Committee of State Finance Ministers Sushil Kumar Modi, on Friday, said the country was “nearing the implementation of th

Published: 26th May 2012 03:05 AM  |   Last Updated: 02nd June 2012 10:32 PM   |  A+A-

BANGALORE: Deputy Chief Minister of Bihar and Chairperson of Empowered Committee of State Finance Ministers Sushil Kumar Modi, on Friday, said the country was “nearing the implementation of the goods and services tax (GST).”

Delivering the inaugural address at a one-day seminar on ‘Taxation of supplies of Goods and Services: Issues relating to state policy, governance and welfare’ organised by National Law School of India, University and Planning Commission of India, Modi said the GST would be a game-changing reform in the country.

He said, “I feel that GST would enable easy business in India, apart from increasing the GDP by at least 2 per cent. An Indian investor has to face different laws and statutes in different states. Further, the GST will reduce the load of taxes and Indian manufacturing will become competent in world markets to face China and European nations.”

He added that Parliamentary Standing Committee on Finance will commence discussions on the 115th Constitutional Amendment Bill, 2011 from June 8.

 “If things go smoothly and the Centre is flexible enough, I think in the coming days, we will be able to implement GST,” he said.

 The GST is an indirect tax that would replace existing levies such as excise duty, service tax and value-added tax (VAT). The states and the central government will impose the tax on almost all goods and services produced in India or imported.

Addressing some of the concerns raised by state governments over the introduction of GST, Modi said, “States are apprehensive about the possibility of revenue loss with the coming of GST. Similar concerns were voiced with VAT was introduced, but the subsequent experience with VAT has dispelled such fears. There may be losses initially, which can be addressed by a compensation mechanism.”

Responding to fears that the states would lose out on their fiscal autonomy, Modi said, “The idea behind the proposed mechanism is to evolve a harmonised tax on of a national common market. If Europe, with separate constitutions in each country, can have a common market, why not India?”



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp