Check for new replies
Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
State-centre consensus on key GST issues, says FM; Cong bickers
State-centre consensus on key GST issues, says FM; Cong bickers

Finance Minister Arun Jaitley today held a meeting with state finance ministers to iron out differences on the goods and services tax (GST), saying that consensus had been reached on a number of issues bogging down the reform, such as whether the rate should be capped in the Constitution.A decade in the making, the ambitious GST will replace almost all central and state-level indirect taxes and levies, and is expected to result in lower taxes, eliminate cascading taxes (tax on tax), improve compliance and widen the tax base.It has however run into opposition from some states, which fear handing over their tax power to the Centre, and from the bill's author Congress party, which says the BJP is diluting its nature, and has made three demands of it before supporting."The idea of the meeting was to lay down further roadmap with respect to how to proceed with the GST. Twenty two state finance ministers attended the meeting and there were representatives from all states and union territories. Everyone contributed with their views," Jaitley said at a press conference following the meeting.He was flanked by West Bengal Finance Minister Amit Mitra, who is also the chairman of the Empowered Committee of State Finance Ministers on GST. Mitra, whose TMC party has pledged support to the GST, said the FMs will meet again in the second week of July to discuss the revenue neutral rate (RNR).Among key issues that were discussed today were the subject of revenue loss to states arising from the rollout of the proposed tax reform, whether there should be an additional 1 percent additional tax on top of GST and whether the rate should be capped in the Constitutional Amendment Bill.The last two demands are close to the Congress, which seeks abolition of the proposed 1 percent additional tax and seeks capping of the GST rate in the Constitution. (Its third demand is to have disputes arising from GST referred to a judicial panel instead of a governing council.)The BJP has said it is open to doing away with the contentious 1 percent tax -- which was proposed to placate agitated manufacturing states such as Tamil Nadu and make up for their losses -- but Jaitley said consensus has been achieved that the Constitutional rate should not be capped.Experts have said capping the GST rate would be problematic considering that the central government would have to amend the Constitution each time if it has to increase the rate over the cap."What the government is telling the principal opposition is that it is either my way or the highway. And that is not how Parliamentary processes work," Congress spokesperson Manish Tewari said. "The government is completely and absolutely inflexible."To be sure, the NDA government, which is in a minority in the Rajya Sabha, might now be able to pass the GST bill without the Congress' support, if some large regional parties are in agreement."It seems like the meeting today was positive," said Pratibha Jain of Nishith Desai Associates, "but there continues to be disconnect between Congress and BJP."On the subject of the revenue neutral rate, PwC India's Pratik Jain said the 18 percent figure that has been mentioned was "quite reasonable"."Today, excise duty is 12.5 percent and VAT is 13-14 percent. So the GST rate would be lower for most sectors barring some like FMCG," he said.

[Only registered and activated users can see links Click here to register]

Check for new replies

Users browsing this thread: 1 Guest(s)

Current time: 12-15-2017, 02:08 PM

Indemnity, Disclaimer & Disclosure Notice:
By visiting you automatically indicate that you agree to our Forum Rules,Chat Rules, Indemnity, Disclaimer & Disclosure Notice and General Content Disclaimer Notice and indemnify, its associates and related parties of all claims howsoever resulting from the usage of the forum/chat Room/site.
Disclaimer: Trading or investing in stocks & commodities is a high risk activity. Any action you choose to take in the markets is totally your own responsibility. You are recommended to make appropriate enquiries and seek appropriate advise before sending money, incurring any expenses, acting on recommendations or entering into any commitment in relation to any advertisement published here. does not vouch for any claims made by the advertisers of products and services. will not be held liable for any consequences in the event such claims are not honoured by the advertisers. will not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of any information by anybody mentioned anywhere on this site.
Disclosure:The information in this forum/Chat Room/site is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. The writers may or may not be trading in the securities mentioned. * All names or products mentioned are trademarks or registered trademarks of their respective owners.
General Content Disclaimer Notice:
In light of our policy of encouraging candid, open exchanges of views and the rapid distribution of information originating from many sources, cannot determine the accuracy or legality of any information that may be uploaded to the forum. Opinions, advice and all other information expressed by participants in discussions are those of the author. You rely on such information at your own risk. You are urged to seek professional advice for specific, individual situations and not rely solely on advice or opinions given in the discussions. Since is an open and free discussion forum, any comments made by members of this forum in their posts reflect their own views and not of the owner or administrator of Thus the owner/administrator indemnify themselves of all claims whatsoever and will not be liable or responsible for any members comments/views in this forum Although we constantly delete all irrelevant content and/or SPAM, if you should find any objectionable or offensive posts made by members of this forum which you would like to bring to our notice for removal then please Contact Us
Links to Third Party Websites:
Please understand that when you access another website through this one, can't accept no responsibility for your experience with the site. In addition, a link to a site does not mean that endorses or recommends that site or its contents.

Vulnerability Scanner