GST (goods and services tax) advent gives Centre room for hike in excise duty
Experts said that a compromise on the nature of GST as a destination-based consumption tax could affect the cost competitiveness and other economic benefits it is projected to bring. As part of introducing GST, the central sales tax that goes to producing states will be abolished. In the new regime, the state component of GST would go to the consuming state on both sale of goods as well as on stock transfers.
“Claims that interstate GST proceeds going only to the consuming states being unjust to the manufacturing states are not fair at all. To realise the full benefits of GST, it is incumbent upon all to have a consensus on the design of GST and to stick to it,” said Prashant Deshpande, senior director, Deloitte.
“The philosophy of GST is of a destination-based tax. It should stay so,” said Harishanker Subramaniam, indirect tax partner, Ernst & Young.
At the Bhubaneswar meeting of the empowered committee of state finance ministers last week, the Centre and states agreed on including petroleum products within GST with states having the power to levy extra taxes on them without input tax credit facility, dropped the proposal to have a Dispute Resolution Authority chaired by a judge and decided on a phased roll-out of the
Be the first to comment.
