Friday, 5 August 2016

GST has been passed by Upper House of Parliament

Rajya Sabha has passed the GST(goods and services tax) Bill unanimously. This will enhance growth and development of the country as corporate do not have to go through tedious taxation by state governments. Now the central government will get the benefits of tax. And state government will loose revenue. Tthere will be uniform tax across the country and this will ease business.
State governments will require higher revenue for development, but the Central government has assured that the revenue loss will be compensated for next 5 years.Each state government has to pass its own state specific GST Bill soon.
It is not very simple as it sounds. The states are run by different party and not necessarily the party at the center(which is BJP now). So there will be difference in attitude towards the states.
There is now dual monitoring system, to keep an eye on supplier and the purchaser. Advantages outweigh the drawbacks. But will this work out.? Can the black market be abolished?Even now, most businesses employ laborers while not paying them minimum wages. Goods wont be taxed as much means better "profit-making" climate. Burden is there on the average Indian or the common man. Well there is some losses and some gains.
In order to ensure that there is no slippage on date of implementation of GST from 1st April, 2017, the Prime Minister reviewed the progress made on various steps needed for the rollout of GST relating to preparation of Model GST laws and rules to be framed, establishment of IT infrastructure for both Centre and States, training of officers of Central and State Governments and outreach for awareness of trade and industry. The Prime Minister directed that all steps must be completed much before 1st April, 2017. The Prime Minister observed that GST Council would need to have intensive meetings to be able to make timely recommendations relating to its mandate provided in Article 279A including making recommendations relating to Model GST laws, GST rates, goods and services that may be subjected to or exempted from GST. 

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