Finance Ministry on Wednesday said the Centre and states are taking administrative steps to meet the April 1, 2016 deadline for roll out of the Goods and Services Tax (GST).
The Select Panel of Rajya Sabha has submitted its report to the House on the GST Constitution Amendment Bill and it is likely to be taken up for consideration and passage in the ongoing Monsoon Session of Parliament.
The passage of the bill on GST in Parliament and its ratification by 50 per cent of the state assemblies will pave the way for implementation of the indirect tax regime.
“Administratively, we are taking all steps, both Centre and States, to meet April 1, 2016 deadline. Effort of central government and State Government would be to have reasonable rate of GST so that GST experience is a successful experience for the whole country,” Revenue Secretary Shaktikanta Das told reporters here.
On the proposal of levying additional 1 per cent tax by the states on inter-state supply of goods, Das said the Empowered Committee of State Finance Ministers have already set up a sub-committee to look at ways to minimise the cascading effect of the additional levy.
As per the provisions of the Bill, states can levy the additional tax for a period of two years or for a period as decided by the GST Council.
“That is the matter which GST Council will decide... I am sure GST Council will take very balanced and good decision on the matter,” Das said.
GST, touted as the biggest indirect tax reform since independence, will subsume excise, service tax and other local levies.
The GST Council, which will decide on the rates, exemptions and threshold, will be set up after the Constitution Amendment Bill is passed by Parliament. Union Finance Minister would be the Chairman
of the Council and state Finance Ministers would be its members.
later in a tweet, Das said the presentation of report by Rajya Sabha Select Committee is a positive development and is a step closer to implementation.
“GST will add to GDP growth and economic buoyancy... (It) will improve efficiency of our economy. India will become a single and common market. Movement of goods to be seamless. Transaction costs to go down,” he tweeted.