New Delhi: The ‘GST’ which has been proved to be useful for restructuring the way our country pays its taxes will be introduced at four levels. 50% of taxable essential commodities are to be kept out of the ‘GST’ tax bracket. While this is the biggest and most important phase in implementing the GST Bill, Industrial sector has welcomed the announcement made about this reform on Thursday.
Efforts were made at the centre level to implement the GST Bill from the forthcoming fiscal year.. Thus, in order to get the parliamentary approval for the GST bill and to get sufficient time to complete its procedure, the Winter Session of the Parliament will advance this year. This Session which is to commence from November 16 intends to get the Parliamentary seal of approval for the ‘GST’ bill.
In the crucial phase of finalising GST structure, GST Council segregated taxable goods and services and finalised the four-tier structure as 5%, 12% 18% and 28%. Indian Industrial sector has welcomed this announcement. Also, the Industrial sector expressed its belief that this tax structure will reduce the rates of many goods.
Prominently, usage of E-systems will be adopted for filing GST returns. Experts in this technical field believe that the introduction of GST will help boosting the ‘Electronics System design and Manufacturing (ESDM). GST will reduce the tax burden on ESDM and it is hoped to imrove the profit margins in India. This in turn, may increase foreign investment, said The ‘Indian electronics and semiconductor association, chief. M.N. Vidyashankar,. Different states have various tax reforms, this had made our tax structure complicated.. He also said that GST will bring uniformity in the tax structure all over the country. Further, he put forth that earlier, to attract investment and industrial sector many states provided tax benefits,GST will end such competitions and uncertainty created by previous tax system.
While welcoming the tier-wise implementation of the GST, world’s leading retailer ‘Walmart’ said, with 0 to 5% tax on essential items, will reduce inflation in the country Whereas, as the taxation burden on soft drinks or beverages like Pepsi and CocaCola still persists, owners of these companies, expressing a bit concern, asserted to follow ‘Wait and Watch’ policy till the GST structure gets clarified. Even though, cess imposed on luxurious goods is high, owners of these companies are still contented as GST will reduce the existing tax burden.Meanwhile GST Council meeting held on Friday to discuss laws and jurisdiction of GST Bill, failed to resolve queries of all the states. So, the next meet scheduled on 24th-25th November., will discuss tax control issues. Thereafter, along with GST, Odisha government has opposed ‘Clean environment’ tax on coal.
Odisha Chief Minister’s office published a letter opposing this cess With this, planned GST council meet scheduled on 9-10 November was cancelled. After a formal discussion on 20th November, the GST council will meet again on 24-25 November. According to the finance ministry the tax proposals for Center, interstate i.e. integrated and State level known as CGST , IGST and SGST respectively will be laid down by 14-15 November.
After the preparations of these proposals, the center will present the GST bill in forthcoming winter session of Parliament for agreement and will implement GST from the coming financial year to rationalize the tax structure.