PATNA: Trade and commerce bodies have hailed the state government’s move to ratify the Goods and Services Tax (GST) Bill stating that the destination-based tax is set to benefit a consumer state like Bihar.
“The swift move of the government to ratify the GST Bill is a commendable move as Bihar will gain about Rs 8,000 crore from the new tax system,” Bihar Industries Association president Ram Lall Khetan told TOI after the passage of the Constitution (122nd Amendment) Bill, 2014 on GST in the state legislature on Tuesday.
Khetan said the revenue benefit would translate into Bihar’s developmental works but the state government also needed to improve on the proposed industrial policy and make it more attractive. “Our suggestion is that the tax rate should not exceed 18% because making the goods and services expensive will not serve the purpose,” he added.
According to experts, central and state GSTs, containing about seven and 10 multiple taxes respectively, is set to do away with cascading taxes such as VAT on excise duty as well as central sales tax and entry tax among others. However, traders said a clearer picture of the rate structure, exemptions, technology, training and taxpayer service and modalities etc will emerge only in the next 3-4 months. “It’s too early to comment on GST right now as at least 15 states will have to ratify it before its full-fledged rollout,” Bihar Chamber of Commerce and Industries (BCCI) vice president Madhukar Nath Bareria said.