GST need of the hour: APCCIF

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The Andhra Pradesh Chambers of Commerce and Industry Federation (APCCIF) called upon its members to join the online campaign on www.change.org and www.avaaz.org for early roll-out of Goods and Services Tax (GST).

APCCIF Executive Director P. Bhaskar Rao stated in a press release that GST could be traced back to the report of Kelkar task force on the implementation of Fiscal Responsibility and Budget Management Act, 2003.

The original proposition for the GST was with the primary objective of controlling the budget deficit and mitigating the shortcomings of the existing indirect tax machinery, particularly for eliminating multiple taxes. It was to be introduced by April 1, 2010 but was deferred several times in Parliament due to lack of consensus.

Mr. Rao explained that GST was a single tax that will cover all goods and services across the country. Octroi, CENVAT, Central and States sales taxes, entry tax, license fees, turnover tax etc. will come under the GST umbrella.

GST is expected to add over 1.5 percentage points to GDP growth and also enhance export competitiveness, ease of doing business and lower the costs for industry.

Mr. Bhaskar Rao further said that more than 45,000 people including country’s top industrialists have launched a signature campaign urging the Members of Parliament to allow the Parliament to function, debate and legislate and pass important legislations like the GST.

Unless the industry and entire business community mounted pressure on the government, GST will not become a reality. Till this happens, various taxes will act as a drag on the economy at a time the global financial turmoil exerted tremendous pressure on developing countries.

 

One Reply to “GST need of the hour: APCCIF”

  1. Dear Sir,

    Please consider the following point with regard to the Indian format of dual GST:-
    1. The rate of GST . The proposed rate of SGST 12% CGST 14% and CST 1% the total rate is 27%. How the consumers will bear this high rate because GST is an indirect tax and it’s ultimate burden will have to be borne by the consumers. The overall worldwide average rate is 16 to 17%. The nations having 20% or more GST rate have 30 Times more per capita income than us.
    2. At present small Industry and most of the Goods are out of the scope of service tax and only paying VAT and the rate is only 5% . These Goods includes most of the agricultural products and food items.
    3. At present majority of dealers are only paying VAT as compared to the dealers who are paying the central excise due to the threshold of 150 Lakhs which is proposed to be reduced to 10 Lakhs. How it can be called simplification of Tax.
    4. How GST will increase the revenue without giving extra burden on the consumers? It is an indirect tax.
    5. The information technology system in the country is very weak and this is causing problem for VAT dealers throughout the country. GST will require more powerful information technology system . First Government should make it powerful and also solve the capacity and speed problems.
    6. Petroleum products should be brought under GST because without it GST will be halfhearted.
    7. The proposal of 1% CST should be scrapped.

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