Addressing media a day after passing the Goods and Services Tax bill in Rajya Sabha, Finance Minister Arun Jaitly said that doping business in India will be easier with GST.
“Once GST is rolled out, doing business in India will be easier. Prices of some goods and commodities may come down after GST roll-out,” Jaitley said.
With Rajya Sabha approving the long-delayed GST bill, the government came out with an implementation roadmap for the national sales tax regime. Finance Minister Arun Jaitley is addressing the media regarding the matter in Delhi.
Jaitley said that the Bill passed in the Upper House, will be sent to state assemblies for approval soon. Here, the government needs at least 50% of the states to ratify the bill.
Revenue Secretary Hasmukh Adhia who gave presentation on the roadmap of the GST said that the journey of a tax reform has just begun.
“It is only end of a beginning. The real work starts now,” he said. “We will announce implementation roadmap on Thursday,” said Revenue Secretary Hasmukh Adhia.
Stating that work has to be on war footing from now on, he said, “We want to implement it as soon as possible.”
In the biggest tax reform since Independence, the national sales tax or GST Bill got the approval of Rajya Sabha to replace a raft of different state and local taxes with a single unified value added tax system to turn the country into the world’s biggest single market.
The 66-year-old Constitution, which gives power to Centre to levy taxes like excise, and empowers states to collect retail sales taxes, was amended though the 122nd Constitution Amendment Bill.
The legislation was approved by the Upper House with 203 votes in favour and none against, after a seven-hour debate.
Dubbing passage of the GST Constitution Amendment Bill as historic, Finance Minister Arun Jaitley today said manufacturing taxes and VAT will come down with the new national sales tax but the same for services tax will be decided by states and centre.
The Goods and Services Tax (GST), which will subsume over a dozen central and state levies including excise duty, service tax and VAT, is “perhaps the most important” tax reform, he said soon after Rajya Sabha overwhelmingly voted for the legislation.
“It is a historic day for the reason that Rajya Sabha has passed the GST bill which has been held up for a very long time. All members present at the time of voting, voted in favour of the bill,” Jaitley told reporters in Parliament House.
Asked if the implementation of the GST would mean rise in cost of air travel, mobile bills and eating out because of incidence of service tax going up in the new regime, Jaitley said that tax rate would be decided by the GST Council, comprising of the Centre and the states.
“Manufacturing taxes will certainly come down, VAT will come down. What level services taxes are to be kept is discretion of GST Council. It will depend on what states along with Centre will decide,” he later told media on Wednesday