States, Centre pooling in ‘sovereignty’ to enable GST: Arun Jaitley

By: | Published: August 8, 2016 7:19 PM

Jaitley says states and Centre are pooling in their "sovereignty" to make the "one nation, one tax" possible.

Besides the usual OFS (offer for sale) route for disinvestment, the newly created Department of Investment and Public Asset Management (DIPAM) has nudged PSUs to buy back shares if they have extra cash which are not put to use for capital expenditure. (Reuters)Under GST, Arun Jaitley informed the Parliament, people will pay tax for a particular “tax component” only once. (Reuters)

Union Finance Minister Arun Jaitley today said the country is moving towards an efficient system through GST. Responding to Congress’ allegation that the GST Bill was flawed, Jaitley said, “The one which you called a ‘flawed bill’ was based on the bill drafted during your (UPA) time.” Speaking during the debate on GST Constitutional Amendment Bill in Lok Sabha, Jaitley, however, also thanked all political parties and MPs for taking part in the discussion. He said that the states and Centre are pooling in their “sovereignty” to make the “one nation, one tax” possible. Under GST, he informed the Parliament, people will pay tax for a particular “tax component” only once.

The Finance Minister said that the earlier versions of GST Bill didn’t mention tax rate cap. He said that the main debate is over tax rate cap in GST which started after 2015. The GSTBill of 2011 did not have the provision for compensating the states, he added. Earlier today, Prime Minister Narendra Modi today allayed all apprehensions that the Goods and Services Tax will negatively affect lives of poor citizens of the country. The PM said that all goods necessary for the poor will be beyond tax net in GST regime. He informed the Parliament that about 55% items related to food and medicine, which can impact consumer inflation have been kept out of the ambit of GST net.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition