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What is GST Bill: Both PM Narendra Modi, Sonia Gandhi have flexed their respective parties' muscles over the fate of the crucial GST Bill, explaining in detail that what they have recommended is the best course of action, thereby putting to test how much power they wield over the functioning of the Indian state. In the tussle, the Congress party has proved that it cannot simply be wished away by the Bharatiya Janata Party (BJP), no matter its brute majority in the Lok Sabha as the Rajya Sabha has been quite effective in playing the spoilsport. We show here what made Narendra Modi retreat from his long held antipathy and policy of conflict with the principal opposition party over the GST Bill and instead try for consensus. So, check out here in 10 points what is GST Bill: (PTI photo)
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1. What is GST Bill: Bill is a destination-based, indirect tax that will be levied on manufacture, sale and consumption of goods and services across India. (Financial Express illustration)
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2. What is GST Bill: Bill will subsume all central and state indirect taxes and levies, including excise duty, additional excise duties, service tax, additional customs duty (countervailing duty, special additional duty of customs), surcharges and cesses, value added tax, sales tax, entertainment tax (other than the tax levied by local bodies), central sales tax (levied by the centre and collected by states), octroi, entry tax, purchase tax, luxury tax, and taxes on lottery, betting and gambling. (Reuters photo)
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3. GST Bill passage will bring uniformity, reduce the cascading effect of these taxes by giving input tax credit. Currently, tax rates differ from state to state. GST Bill will ensure a comprehensive tax base with minimum exemptions – will help industry, which will be able to reap benefits of common procedures and claim credit for taxes paid. (Financial Express illustration)
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4. What is GST Bill: Bill passage is expected to reduce the cost for consumers with Finance Minister Arun Jaitley estimating GST will help increase India’s GDP by around 2 per cent. (Express photo by Prem Nath)
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5. What is GST Bill: As far as the the constitutional status of GST is concerned, then currently, states don’t have the power to levy service tax, while the Centre does not have the power to levy tax beyond the factory gate, i.e. VAT, sales tax, etc. To facilitate this, a constitutional amendment is required. (Reuters photo)
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6. What is GST Bill: The UPA government brought the GST Bill in Lok Sabha in 2011, but failed to get it passed. The NDA government introduced a “slightly modified” version of the GST Bill in Lok Sabha last December. It was cleared on May 6, but for GST to become a reality, the Bill must be cleared by two-thirds majority by both Houses, and ratified by 50% of states. It is now pending in Rajya Sabha and that is where the meeting between PM Narendra Modi, former prime minister Manmohan Singh and Congress President Sonia Gandhi assumes significance. (Financial Express illustration)
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7. What is GST Bill: Exactly why the GST Bill is stuck is because the government does not have a majority in Rajya Sabha. Also, many states do not want to give up their fiscal autonomy. In Budget 2007-08, then finance minister P Chidambaram announced GST’s implementation from April 1, 2010. The empowered committee of state finance ministers led the discussions. Punjab and Haryana were reluctant to give up purchase tax, Maharashtra was unwilling to give up octroi, and all states wanted to keep petroleum and alcohol out of the ambit of GST. BJP-ruled states like Madhya Pradesh and Gujarat took hard positions too. (Reuters photo)
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8. What is GST Bill: The GST Bill has been passed in the Lok Sabha, but despite that most of the original concerns of states remain. Gujarat and Maharashtra want the additional one per cent levy extended beyond the proposed two years, and raised to two per cent. Punjab wants purchase tax outside GST. (Reuters photo)
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1. Budget 2016: Implementation of Goods & Service Tax (GST) – CouponDunia’s Chief Operating Officer, Ankita Tandon expects amoother tax structure for e-com players as well as implementation of GST by 2016. “The upcoming budget should look aim at simplifying the tax structure for the e-commerce sector. The government should also look at zeroing in some ground rules in order to boost the e-commerce sector. The budget should also look to roll out the implementation of GST by 2016,” said Tandon. “As promised in the Union Budget of 2015, implementation of GST from April 2016 will help e-commerce companies rationalise supply chains by addressing taxation issues,” she added.
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Budget 2016: Only one-third expect this to be the last budget for the 63-year-old Finance Minister Arun Jaitley, the government’s chief policy spokesman and point person for dealing with foreign investors. Jaitley has so far failed to win cross-party support for a ground-breaking Goods and Services Tax (GST).
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What is GST Bill: According to brokerage houses, Maruti Suzuki India, Britannia Industries, Pantaloons, Dish TV could be among 15 stocks likely to be good investment picks. Why that is? Because for manufacturing companies, the GST Bill means a level playing field would be created for both organised and unorganised sectors, and cost optimisation would be possible in terms of movement and warehousing of goods due to uniform tax rate. Consequently, it would have positive fallout on inflation, curtailing tax avoidance and creating buoyancy in the economy. <strong>Read full story:</strong> <a href="https://www.financialexpress.com/article/markets/indian-markets/if-gst-gets-a-passage-top-15-stocks-to-invest-in-on-stock-markets/172160/"><strong>15 top stock picks likely to be powered by GST</strong></a>
