GST bill: Implementation of new tax regime will enhance competitiveness: FICCI

By: | Published: December 5, 2015 5:14 PM

GST bill: CEA Arvind Subramanian panel's recommendations implementation would bring about efficiency and transparency in the indirect tax system enhancing the competitiveness of Indian industry, FICCI said.

GST bill: CEA Arvind Subramanian panel’s recommendations implementation would bring about efficiency and transparency in the indirect tax system enhancing the competitiveness of Indian industry, FICCI said. GST bill aims at creating a customs union for India’s 1.2 billion people. Goods and Service Tax (GST) is the biggest revenue shake-up since Independence from Britain in 1947. Supporters say it will add up to two percentage points to economic growth by replacing multiple federal and state tax levies, a chaotic structure that inflates costs for businesses. CEA panel recommendations can break the political logjam over GST bill in Parlaiment, as it suggested 17-18 per cent GST rate and dropping of the 1% additional tax on inter-state sales. Here are 3 points made by Ficci to note about GST:

1. GST has been a long pending reform measure and its implementation would bring about efficiency and transparency in the indirect tax system enhancing the competitiveness of India’s industry.

2. GST is expected to extend long-term benefits not only to government, industry or traders but to the final consumers as well.

3. FICCI welcomes the recommendations put forth by the GST panel today. The industry has been looking forward to this report and puts to rest the taxpayers’ anxiety on the expected rates and many other issues relating to GST regime.

Inputs by PTI, Reuters, ANI

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