GST launch in India: Senior economist and Niti Aayog member Bibek Debroy said that one of the major problems with the present GST is its numerous rates structure.
GST launch in India: Senior economist and Niti Aayog member Bibek Debroy said that one of the major problems with the present GST Goods and Services Tax (GST) is its numerous rates structure, IANS revealed. He said that multiple rates of GST emerge from desire to tax those items which are considered luxury through the means of indirect tax and not the direct ones. Speaking at the Aaj Tak GST Conclave, the economist said that the multiple rates are coming from the desire to drive other ends through indirect tax policy and other concerns of the state governments.
Presently, the GST tax rates are divided in four slabs of 5 per cent, 12 percent, 18 per cent and 28 percent, as was decided by the by the GST Council. The tax which is being considered as the single most significant tax reform since India’s Independence will be implemented from Saturday. He added that even while the current GST set-up may not be a perfect one but is a step in that direction, the agency report said.
Union Finance Minister Arun Jaitley, in a meeting with industry representatives yesterday, asked them to pass the benefits of the GST to the consumers in a transparent manner. “The overall incidence of tax after implementation of GST will be less especially in case of the consumer goods than the present incidence of tax, therefore, it is imperative on part of the trade and industry to pass on these benefits to the consumers at large,” Jaitley was quoted as saying in a finance ministry statement.
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Expressing confidence that GST will not have any inflationary impact, the minister asked the industry to pass on to retailers, distributor and consumers on the the positive impact of GST on the price front, the statement added.