Focus on GST exemptions and IT readiness: Finance Ministry to industry

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GST is expected to bring in substantial reduction in non-compliance in the trading sector, potentially bringing trading and manufacturing at par and increasing competitiveness.

The Finance Ministry on Tuesday asked the industry to look at critical exemptions and IT platform readiness rather than stressing too much on date of GST implementation.

“The remarkable part of the GST journey is the impressive convergence between states on a host of issues. I would suggest industry to look at critical exemptions and IT platform readiness rather than stressing too much on date of GST implementation as this can hamper preparedness,” said Central Board of Excise and Customs (CBEC) Member V S Krishnan at a CII event on Tuesday.

“Goods and Service Tax (GST) once implemented will boost GDP growth by 1-2%. It will have a major impact on reducing logistics cost which is around 14-15% in India compared with the world average of 7%,” a CII press release quoted him as saying.

GST is expected to bring in substantial reduction in non-compliance in the trading sector, potentially bringing trading and manufacturing at par and increasing competitiveness.

Krishnan, according to the release, said the standing committee of the Rajya Sabha has taken the line that the GST rate should not be more than 20% and more clarity will be given soon.

The government plans to roll out GST, which seeks to replace all indirect taxes with a uniform levy by April 1, 2016. GST is estimated to boost India’s GDP by 1-2%.

The Constitution Amendment Bill for rollout of GST has been passed in the Lok Sabha, but is yet to be approved by the Rajya Sabha where the ruling BJP does not enjoy majority of its own.

Source: http://www.dnaindia.com/money/report-focus-on-gst-exemptions-and-it-readiness-finance-ministry-to-industry-2130126

2 Replies to “Focus on GST exemptions and IT readiness: Finance Ministry to industry”

  1. Akhil says:

    “CGST and IGST rates will be common for all the States while it is expected that the SGST rates will be different and may vary from States to States within the float permitted by the GST council.” is this correct…?

  2. VideoPortal says:

    The indirect tax collection reflects hike in excise duty on diesel and petrol, withdrawal of exemptions for motor vehicles, increase in clean energy cess and the hike in service tax rate in June.

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