GST to convert entire country into one market: Patnaik

Share

The meeting of the GST Council, headed by Jaitley and consisting of state finance ministers, kicked off here today.

Around 1,000 security personnel will be pressed into service for sanitising the conference venue and the hotels the officials will be staying.

The special session will discuss state GST Bill and amendment to the Odisha Value Added Tax (VAT), said a notification.

Since then Germany, Italy, the UK, South Korea, Japan, Canada and Australia have been among the over a dozen nations which have implemented the GST.

"The GST will bring about comprehensive reform of the indirect tax regime of the country".

More news: 'Don't kill me' for playing kids, begs Mourinho
More news: In Debate Prep, Hillary Clinton Practiced Dodging Trump's Weird Macho Hugs
More news: Worldwide effort set to keep Trump happy on 1st trip overseas

The country would have a unified market for goods and services and the Gross Domestic Product (GDP) would be upped by 2 per cent following implementation of the proposed Goods and Services Tax (GST) system, viewed experts who attended a workshop on GST held here on Wednesday.

Smalls cars will be charged one per cent cess on top of 28 per cent tax, while mid-sized cars will attract three per cent cess and luxury cars 15 per cent on top of peak rates. States sought to have the lowest GST for goods sensitive to their states. However, the government is yet to decide the GST rate for branded cereals.

"Nearly 81 per cent of the items will fall under below-18 per cent GST rate slabs and only 19 per cent of the goods will be taxed above 18 per cent", Revenue Secretary Hasmukh Adhia said.

Officials said that basic services which are at present exempt from service tax would be kept out of the GST as the Centre does not want to give any shock to people in the first year of GST rollout.

Just like the GST Network rates vendors on the basis of their compliance, firms must also internally rate vendors, Mr. Prasad said.

Share