McClenaghan on Thursday, told FE that there is an urgent need to implement Goods and Service Tax (GST) at the earliest so that the cascading effect of taxes is removed form indigenous manufacturing and services cost, transaction cost is reduced and trade and industry grow faster by taking advantage of boom in the economy and efficient supply chain.
India should emerge as a common economic market by implementing GST by integrating the excise and service tax into a central GST, he noted.
At present, the division of taxing statutes is between the central and state governments. Customs duty, central excise duty, service tax are all levied by the centre while the erstwhile sales tax presently called VAT is levied by various states.
Lack of uniformity in the tax regime results in double taxation and exporters find it hard to get the credit for the taxes paid. Moreover, there is uncertainty on how the goods and services are to be taxed.