Chidambaram likely to spell out GST implementation


Indo-Japan summit: pacts on bullet train, defence, nuke energy CCI seeks public scrutiny of Rs 500-crore PVR-DT Cinemas deal Saudi holds first ever election open to women Indian-origin writer wins South East Asia literary award UP Cong chief booked for maligning RSS using ‘morphed’ photo ‘Make in India’ has become a movement in Japan: Modi US ready to help bring Mumbai attackers to justice Huge audience for Indian classical music abroad: Anoushka Shankar Not just bullet train, India wants high speed growth: Modi Food, fuel prices skyrocketing in Nepal due to blockade: UN Ahmad Javed appointed Indian envoy to Saudi Arabia Spaniards among six killed in Kabul diplomatic quarter siege Final draft of climate deal ready for adoption: French hosts India emerges as key player in Paris talks: report 20 world-class varsities I4-year-old gang-raped in moving car near Delhi Brawl in Ukraine parliament after MP manhandles premier Turkey fines Twitter over ‘pro-terror’ content Indian challenge ends at BWF Super Series Finals Majority of Americans opposed to Trump’s Muslim-ban call: poll Pakistani MP Imran Khan calls on Modi Girl from Hyderabad kept under watch for suspected ISIS links TCS, ITC biggest wealth creators during 2010-15: Study Bullet train pact with Japan tomorrow LS adopts resolution on rehabilitation of Kashmiri pandits Abe arrives in India on 3-day visit National Herald case ‘driven’ by PM office: Rahul Japan to fund 80 percent of India’s first bullet train: Minister Cyclist Deborah rises to world number 4 DNA bar coding to identify any organism a call away 200 militants active in Kashmir, 1/3 are foreigners: CRPF Karnataka beat Haryana by 38 runs Indo-Pak FS talks in Delhi next month to chart dialogue path IPL has taken away home advantage from India in WT20: Kohli Robust pick-up: October industrial production grows 9.8 pc 10 years RI for Park Street rape convicts Coca-Cola may shut some plants if ‘sin tax’ imposed Anand loses to Grischuk, slips to ninth spot RSS no ISI organisation; band of patriots: Gadkari Canada welcomes first Syrian refugees Audi launches new Q7 SUV in India priced up to Rs 77.5 lakh Hindutva agenda is not an example of tolerance: Opp to Govt Jiah case: CBI rapped for ‘leak’; Sooraj appears in court HC verdict very positive for Salman, might meet him soon: SRK Domestic passenger car sales jump over 10% in Nov New diesel-run vehicles will not be registered in Delhi: NGT Pak test-fires nuclear-capable Shaheen-III ballistic missile Attack on Hindu temple in Bangladesh injures two Sonia did not want someone with independent mind as PM: Pawar Banks given new powers to deal with bad loans: Raghuram Rajan Parrikar deflects Trump’s Islamic bomb Abe’s India visit part of plan to contain China: Chinese media Ansari leaves for Turkmenistan, to attend TAPI event Southern India likely to see higher than normal rainfall: UN 1000 students get jobs in 10 days at IIT-Kgp India, Pakistan in same group for WT20, to clash on Mar 19 Salman withdraws from SC plea to summon Kamaal Khan as witness Cong, TMC, RJD, JD(U) walk out of LS over BJP member’s remark Ex-RJD MP Md Shahbuddin given life sentence in murder case Japanese PM, Modi to attend ‘Ganga Arti’ at Varanasi Parrikar given rare insight into US N-powered aircraft carrier Climate talks go into overtime, deal expected Saturday Eying Dalits and backwards, RSS plans campaign for Hindu unity Geneva, Chicago and Toronto on ‘alert’ against terror threats New, shorter draft of climate accord includes India’s demands
You are here: Home » Business » Chidambaram likely to spell out GST implementation
New Delhi, Feb 25, 2013 (IANS)
PTI File Photo
Finance Minister P. Chidambaram is likely to announce in his budget speech Feb 28 a clear roadmap with timeframes to implement the much-awaited goods and services tax (GST) regime that aims to bring down state-level barriers and make India a single market.

Naina Lal Kidwai, president, Federation of Indian Chambers of Commerce and Industry (FICCI), said there have been positive developments in recent months that give an indication that finance minister would outline his strategy for the implementation of the GST.

An empowered group of state finance ministers during a meeting held in Bhubaneswar last month broadly agreed on the central sales tax compensation issue. The empowered group, headed by Bihar’s deputy chief minister Sushil Kumar Modi, has set up three committees to deliberate on other aspects of GST, such as threshold limits for exemption, administrative control, and GST rates.

“These developments point towards a positive forward movement on the road to implementation of GST and FICCI is hopeful that a clear roadmap with timeframes will be specified in the budget speech,” Kidwai told IANS.

“Laying down a roadmap for introduction of GST and its implementation would be the biggest reform in indirect taxation. Stable tax rates would send the right signal to industry at this juncture,” she said.

The proposed tax reform that seeks to replace all the indirect taxes like central sales tax, state-level sales tax, excise duty, service tax and value-added tax (VAT) with a single and uniform tax rate across the country has missed several deadlines.

In his budget speech of 2007-08, Chidambaram had set a deadline of April 1, 2010 for implementation of the GST. The second deadline for the GST was April 1, 2012. Now it is hoped that Chidambaram might set April 1, 2014 deadline for the implementation of the new tax regime.

GST can be implemented only through constitutional amendment. It will require approval of at least two-thirds of the members present and voting in each houses of the Parliament. It must also be ratified by the legislatures of at least half of the states.
Kidwai, who is also country head of HSBC India, said the GST has the potential to add up to 1.5 to 2 percent to India’s gross domestic product (GDP) growth, which has slumped to the lowest level in 10 years.

“GST will be a game changer for the economy and will act as a permanent stimulus, enhancing competitiveness of both the manufacturing sector and our exports,” she said.
As per the data released by the Central Statistics Office (CSO) recently, India’s GDP is expected to grow at 5 percent in the financial year ending March 31. This will be the worst performance of the Indian economy since 2002-03 when the growth was recorded at 4 percent.

Pranay Dhabhai, managing director, Akai India, said clear direction regarding the implementation of the GST regime would send a positive signal to investors and the markets.

“The proposed legislation to replace all indirect taxes on goods and services by a uniform tax will help boost the country’s economic growth. There is a need to have a roadmap for contiguous implementation from the states else the companies will have to face taxation issues between GST-compliant and non-GST states,” he said.


Leave a Reply

Your email address will not be published.

Solve this and then Post Comment *

scroll to top