CII bats for goods and services tax
Updated: Jun 29, 2013 03:03:00pm
New Delhi, Jun 29 (KNN) The Confederation of Indian Industry (CII) today said that implementation of goods and services tax will make India a single market and ensure free flow of goods.
Further, it would create more efficient supply chains and reduce transaction costs while lowering final prices for buyers.
“A more competitive manufacturing sector could help add more jobs and encourage exports as well,” it said in a press release.
However, CII said that issues such as threshold limit, compounding scheme for small traders, taxation of inter-state trade and others still need to be discussed by the empowered committee. The final design of the GST model would depend on resolution of these pending areas.
India would gain a lot through the GST as it would bring in key benefits to both producers and consumers, imparting efficiency to the indirect tax system.
“GST has the potential to add as much as 1.5 – 2.0 percentage points to GDP growth rate, given the current slowdown of the Indian economy, such a measure is an imperative and is a ready stimulus,” said CII, Former President, Adi Godrej.
GST would also help in increasing tax base, curbing evasion and raising compliance for both indirect and direct taxes. Better compliance could raise additional tax revenues of almost 20 per cent.
CII also urged the empowered committee to address industry concerns relating to inclusion of all goods and services in the Constitutional Amendment Bill.
The GST was initiated by the Finance Minister P Chidambaram in the Budget of 2007-08, and was expected to come in force by April 2010. The 115th Constitutional Amendment Bill has been introduced in Parliament and is undergoing scrutiny by the Parliamentary Standing Committee on Finance which is expected to deliver its report shortly. (KNN)
Further, it would create more efficient supply chains and reduce transaction costs while lowering final prices for buyers.
“A more competitive manufacturing sector could help add more jobs and encourage exports as well,” it said in a press release.
However, CII said that issues such as threshold limit, compounding scheme for small traders, taxation of inter-state trade and others still need to be discussed by the empowered committee. The final design of the GST model would depend on resolution of these pending areas.
India would gain a lot through the GST as it would bring in key benefits to both producers and consumers, imparting efficiency to the indirect tax system.
“GST has the potential to add as much as 1.5 – 2.0 percentage points to GDP growth rate, given the current slowdown of the Indian economy, such a measure is an imperative and is a ready stimulus,” said CII, Former President, Adi Godrej.
GST would also help in increasing tax base, curbing evasion and raising compliance for both indirect and direct taxes. Better compliance could raise additional tax revenues of almost 20 per cent.
CII also urged the empowered committee to address industry concerns relating to inclusion of all goods and services in the Constitutional Amendment Bill.
The GST was initiated by the Finance Minister P Chidambaram in the Budget of 2007-08, and was expected to come in force by April 2010. The 115th Constitutional Amendment Bill has been introduced in Parliament and is undergoing scrutiny by the Parliamentary Standing Committee on Finance which is expected to deliver its report shortly. (KNN)
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