KOCHI: E-commerce transactions will come under the purview of the Goods and Services Tax (GST), said Finance Minister K M Mani.
The Minister, who is also chairman of the Empowered Committee of the State Finance Ministers on GST, was speaking at a seminar on GST organised by the Kerala Chamber of Commerce and Industry (KCCI) here on Friday.He said the rate of taxation under the GST regime had not been decided yet.
“Petroleum products and alcohol, from which states get the maximum revenue, will be excluded from GST. Manufacturing states like Gujarat and Maharashtra have asked for hike in rates under the GST regime. Their demand is being currently discussed. For the implementation of GST, Central and state GST laws should be passed. There is a need for Constitutional amendment too. Discussions are currently on with the Prime Minister, Finance Minister and the states concerned in this regard,” said Mani, adding that the states were seeking 100 per cent compensation for five years after the implementation of GST.
The earlier proposal was for 100 per cent requital for three years, 75 per cent on the fourth year and 50 per cent on the fifth year.Mani claimed that GST would bring in a single tax rate in the country, which is the practice in the developed world.Stating that GST would be beneficial for all, the Minister said trade would become smoother under the GST regime.
“Tax evasion will come down and prices of essential commodities will drop. We are hopeful of rolling out GST on April 1, 2016,” he pointed out.
Hibi Eden MLA presided over the function. KCCI chairman Mathew Kuruvithadam and vice-chairman Antony Thomas also spoke.