Bengaluru, Aug 5 (KNN) Karnataka Small Scale Industries Association (KASSIA) has welcomed the passage of the Goods & Services Tax (GST) Bill in Rajya Sabha and said its implementation would largely benefit the MSME sector across the states.

The industry body said it is hopeful that the Government will be able to complete the procedural formalities for its rollout so as to be effective from April 1, 2017.

KASSIA President A. Padmanabha said the phasing out of CST, subsuming of major Central and State taxes in GST, and complete and comprehensive setoff of input goods and services, would reduce the cost of locally manufactured goods and services, thus immensely benefiting micro & small scale industries in particular.

The much awaited GST Bill was passed by the Rajya Sabha on Wednesday. The Goods and Services tax (GST) will bring about the biggest tax reform since Independence as it will help minimizing fiscal barriers between states.

There are major milestones which need to be covered before April 1, 2017, the likely rollout date for GST. At least 15 of India’s 29 states have to ratify the bill followed by the assent of the President. After which, the GST Council will be constituted.

Several states have suggested that the Goods and Services Tax rate+ should be over 20% to minimize revenue losses, way ahead of the 17-19% proposed by the panel headed by chief economic adviser Arvind Subramanian. (KNN Bureau)