The Parliament has taken up the GST Constitutional Amendment Bill for consideration and passage.
Tomorrow when the rate comes, the standard rate should not be more than 18 percent. [If it is more] we will campaign against throughout the country," Chidambaram said, before seeking an assurance that the GST Bill will not be passed as a Money Bill. (A Money Bill does not need the Rajya Sabha's assent.)
The highest rate of GST even in rich countries is about 16 percent. A high rate will lead to inflation, tax evasion and an imperfect tax system.
GST is one of the most significant reforms ever undertaken. It will broaden the tax base, reduce cascading taxes (tax on tax) and boost growth," Jaitley says.
Arun Jaitley elaborated upon the design of the GST, stresses upon the need for balancing federal interests as well as that of the Centre. He also talks about the features of GST, pointing out that for now, consumable alcohol has been kept out of its ambit while petroleum products have been zero-rated for the next few years.
The Finance Minister talked about the history of the Bill, which was first mooted about a decade back in 2006 by erstwhile FM P Chidambaram.
Finally, the ambitious goods and services tax (GST) could be a reality. India's parliament is due to vote on the much-awaited Goods and Services Tax (GST) bill today. Hailed as the biggest tax reform since independence, the one-nation-one-tax regime will convert 29 states into a single market. The implementation of GST from April 1,2017 which was passed once by parliament and cleared by 50 percent of the state assemblies, will add 2 percentage points to India's GDP, according to economists. The bill was passed by the Lok Sabha, the lower house of the Indian parliament, last year, but it has been stuck in the upper house of parliament, or the Rajya Sabha, where PM Narendra Modi's BJP does not have a majority
GST IMPACT ON VARIOUS SECTOR:-
1) BANKS -Current service tax 15% know after GST 18% Negative.
2) CONSUMER STAPLES current tax rate 22% know after GST it's 18% . Positive for - Asian Paints, Dabur, HUL, EMAMI and NEGATIVE for ITC & UNITED BEVERIES.
3) CONSUMER DISCRETIONARY current 15% after GST 18% NEGATIVE for Jubilant Food works, Coffee Day & Restaurant Businesses.
4) MEDIA - current Tax 15% service tax and 7% entertainment Tax by State's know After GST it will be 18% POSITIVE for DISH TV, VIDEOCON D2H, BIG TV
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