With an aim to implement the Goods and Service Tax (GST) soon and to provide impetus to Indian industry, Finance Minister Arun Jailtley has stated that the revised Constitution Amendment Bill to roll out GST would be introduced in the forthcoming Winter Session of Parliament. By adding further, Finance Minister stressed that the first tranche of compensation to States for their revenue loss arising due to phasing out of Central Sales Tax (CST) may also be taken up in the Winter Session.
The Government proposes to implement the GST from April 1, 2016, and the new Finance Commission is also likely to be set up ahead of its schedule to look into the issues related with the new indirect tax regime.
The proposed GST is one of the biggest taxation reforms in India and will replace existing state and federal levies such as excise duty, service tax and value-added tax (VAT) and will integrate State economies and boost overall growth. Under GST, the taxation burden will be divided equitably between manufacturing and services, through a lower tax rate by increasing the tax base and minimizing exemptions. The industry is awaiting its introduction, as GST would boost revenues and aid economic growth.