To take your ideas to Policymakers, Join the Campaign of #PolicyPulse Write to feedback@policypulse.com

Cabinet drops 1 per cent additional tax from GST Bill

Analysts believe the GST could boost India's economic growth by up to 2 percentage points

Policy Pulse
Publish Date: Jul 31 2016 4:42PM | Updated Date: Jul 31 2016 4:42PM

Cabinet drops 1 per cent additional tax from GST Bill

With the government dropping the contentious 1% additional inter-state tax, the proposed national sales tax, GST, will be much more simplified, said tax experts.

 

Rajya Sabha to consider the amendments but ahead of that the government has met a key opposition demand of scrapping 1% additional tax on inter-state movement of goods. It has also agreed to compensate states for any revenue losses for five years.

 

The Goods and Services Tax (GST) seeks to replace most of the Centre taxes and levies in 29 states, transforming the nation into a customs union. Analysts believe the GST could boost India's economic growth by up to 2 percentage points.

 

According to Business Standard report, Sachin Menon Partner and Head, Indirect Tax at KPMG, said the changes made in the GST Bill shows the commitment of the government to introduce GST.

 

"Hope our representatives put the nation first, behave responsibly to pass the GST bill," he said.