India is likely to introduce the Goods and Services
Tax (GST) bill in parliament in the present session, according to Finance
Minister Arun Jaitley.
The government has proposed to implement GST Bill,
which provides for a uniform indirect tax structure, from April 1, 2016 and the
new Finance Commission may look into the issues related to the new indirect tax
regime.
The GST will subsume indirect taxes like excise duty
and service tax at the central level and VAT on the states front, besides local
levies.
There are differences between the Centre and states
on some issues with regard to the implementation of GST that includes the
revenue neutral rate and keeping petroleum, liquor out of the ambit.
While a sub-committee on GST has suggested that the
revenue neutral rate of GST be pegged at about 27 percent, the states are yet
to decide on it. It had suggested states GST at 13.91 percent and Central GST
at 12.77 percent.
Besides, states have been demanding that petroleum,
alcohol and tobacco should be kept out of the purview of GST.
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