Finance Minister Arun Jaitley today said a Constitution Amendment Bill for introduction of Goods and Services Tax(GST) will be passed in the current session of Parliament as there is a broad consensus among states on the issue.
Jaitley said he is optimistic about introduction of GST, which will create a nationwide unified market and remove trade barriers in the form of cascading effects of taxation, from April 1, 2016.
He was speaking to reporters after meeting Finance Ministers from 18 states to discuss the road-map for roll out of GST.
“There was a broad consensus that states are in support of GST. A lot of homework has been done already,” he said.
The government, he said, will go ahead with constitutional amendment bill on GST in the current budget session of Parliament.
“I will give a notice in Lok Sabha (for taking up of the Bill) in couple of days,” he said.
The Bill was introduced in the Lok Sabha in December.
The Centre is working towards addressing concerns of all states for rolling out GST on the scheduled date.
The Centre and states are also working on a new Revenue Neutral Rate, which is currently pegged at 27 per cent.
RNR is one at which there will be no revenue loss to states after GST implementation.
The re-calculation of RNR is necessary as at present it does not take into account the taxation of petroleum products as also the 1 per cent additional tax which states can levy as part of the GST Bill.
Jaitley had last week said that the implementation of the landmark GST regime would increase India’s GDP by 1-2 per cent.
A single rate GST will replace central excise, state VAT, entertainment tax, octroi, entry tax, luxury tax and purchase tax on goods and services to ensure seamless transfer and end of inspector raj as well as tax on tax, he had said.
Source: Business Today