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‘GST to be simple with 1% extra tax removal’

Bill is listed for consideration in the Upper House within few days

Policy Pulse
Publish Date: Aug 1 2016 9:50AM | Updated Date: Aug 1 2016 9:50AM

‘GST to be simple with 1% extra tax removal’

Photo: superstock.com

 

As the Centre is planning to drop contentious 1 percent additional inter-state tax, the proposed GST stands simplified with deviations removed, said tax experts.

 
Government has met a crucial Opposition demand of scrapping 1 percent additional tax on inter-state movement of goods. It has also decided to compensate states for any revenue losses for five years.
 
Experts believe the GST could enhance India's economic growth by up to 2 percentage points.
 
Sachin Menon Partner and Head, Indirect Tax at KPMG, suggested that the changes made in the GST Bill shows the promise of the government to introduce GST.
 
"Hope our representatives put the nation first, behave responsibly to pass the GST bill," he told news agency PTI.
 
GST Bill is listed for consideration in the Upper House within few days.
 
PwC Partner (Indirect Tax) Anita Rastogi added that proposed 1 per ent tax was not in line with the main concepts of GST, as the tax would have been a cost in the entire supply chain at several supply incidences. "Hence its removal is a welcome decision".
 
Nitish Sharma of Nangia & Co said  that removing additional tax is positive step towards removing obstruction in the credit chain and would certainly simplify the tax process.