Black money bill passed; GST by April 2016 a challenge, says FM Jaitley

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“I want to give a reasonable time for the compliance window and a further reasonable time for people to deposit the tax,” Finance Minster Arun Jaitley said

NEW DELHI: India proposes to give “reasonable” timeframe to those having unaccounted foreign assets to come clean using the compliance window in the Black Money Bill passed by Parliament on Wednesday before its stringent penal provisions kick in.

They will be given sufficient time to pay up the tax on such income and assets. “I want to give a reasonable time for the compliance window and a further reasonable time for people to deposit the tax,” Finance Minster Arun Jaitley said in an interaction with media late on Wednesday evening.

FM said the government managed to get several crucial financial legislation cleared, but admitted that rolling out goods and services tax by April 1, 2016 is as challenge after the constitutional amendment bill got stalled in Rajya Sabha.

“These two months that we have lost are quite critical and therefore we will have to work extremely hard to cover up for this timeline so that first April 2016 deadline is not lost,” FM said, listing out the measures that needed to be done.

“The GST law constitutional amendment bill should have really been passed in this session,” FM said blaming the Congress for stalling the House. “For some reasons the principal Opposition, the Congress party, took a view that it needs one more committee. Surprisingly, because a) it was their own bill; b) its been improved upon by a standing committee; c) their own chief ministers are privy to the empowered committee which has approved it,” FM said. “I don’t think the Congress party has sufficient numbers to succeed the motion to referring it to a select committee. But then they started resorting to other tactics like not allowing House to proceed and so on.

And therefore, we had to make the best of situation,” FM said, justifying the government’s decision to send the bill to a select committee. The minster said the government will keep three other bills needed for GST in readiness and the work on IT backbone for the single levy was already on.

GST has to be reasonably affordable rate taxation, he said.

These three laws that are needed to be passed after the constitutional amendment bill is passed in the monsoon session are the CGST, IGST and SGST, the three levies under the single tax. At least half the states will also have to pass the constitutional amendment bill.

 

Source: http://economictimes.indiatimes.com/news/politics-and-nation/black-money-bill-passed-gst-by-april-2016-a-challenge-says-fm-jaitley/articleshow/47276774.cms

One Reply to “Black money bill passed; GST by April 2016 a challenge, says FM Jaitley”

  1. One per cent additional tax imposition in addition to CGST, SGST and IGST will lead to cascading effect. It distorts the very purpose of GST. Double taxation creates further confusion to the system. It is difficult to determine the origin state when there is more than one interstate transaction of goods. Finalisation of GST rate is very important to protect state revenue, central revenue and also to control the increase of consumer price. Consumer price of services will increase sharply if the rate of GST is around 27 per cent. It is advisable to have a lower rate for services .

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