President expects govt to set up GST council soon

Chennai, Sep 10 (KNN)  President Pranab Mukherjee on Saturday said he his hoping that the government will set up a GST Council soon and reduce cascading effect of indirect taxes.‎

He said that the GST, which will transform India's USD 2 trillion economy and 1.3 billion consumers into a single market for the first time, has been ratified by 19-20 states after Parliament nod last month, thereby qualifying to Presidential assent, he said.

He was speaking at the centenary celebrations of the Karur Vysya Bank in Chennai.

“I do hope the finance ministry will take appropriate steps to set up the GST council to fix the rate because it is the responsibility of the GST Council that one uniform rate of goods and services is introduced in our economy," he said.

GST, which will replace an array of central and state indirect taxes like excise duty, service tax and VAT, will "not only be a one uniform rate of taxes but it will also be single point taxation not multi-point taxation and therefore the cascading effect would not be very serious," he said.

President Mukherjee said the effort made over almost one and half decade fructified with the passage of GST legislation.

"Finally with the constitutional procedures being complied and constitution amendment being carried by both Houses of Parliament and day before yesterday more than 19 states, perhaps 20 states, ratified and therefore it has qualified for Presidential assent," he said.

The President on Thursday gave assent to Constitution Amendment Bill on the new indirect tax regime which the government wants to roll out from April 1 next year. (KNN Bureau)