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States want cos to share GST benefits with consumers

Industry has supported GST rate of 18 percent, which it said would lead to tax buoyancy

Policy Pulse
Publish Date: Aug 31 2016 11:08AM | Updated Date: Aug 31 2016 10:03PM

States want cos to share GST benefits with consumers

 States want companies to share benefits of a likely lower Goods and Services Tax with buyers, turning the tables on the industry, which wanted a moderate tax rate and fewer compliance requirements. 

 
Industry has supported GST rate of 18 percent, which it said would lead to tax buoyancy. 
 
"Some states wanted to know from the industry that is demanding moderate rate as to how they will see that the benefit is passed on to consumers," Amit Mitra, finance minister of West Bengal and chairman of the empowered committee of state finance ministers, was quoted as saying. 
 
Even though no provision has been suggested in the law till now, some finance ministers wanted the industry to suggest how the benefits of the new tax regime would be passed on to the people. 
 
GST, which will replace central taxes such as service tax and excise duty and states taxes like VAT, is proposed to be rolled out from April 1 next year.