The government is confident of getting the Goods and Services Tax (GST) Constitutional Amendment Bill passed in the ongoing winter session of Parliament. Minister of State for Finance Jayant Sinha has asserted that there are three challenges associated with the implementation of GST, which includes the revenue neutral rate and keeping petroleum, liquor out of the ambit. Despite these challenges, the government is working very hard to pass the bill in current session so that the new tax regime could be rolled out by April 1, 2016.
The GST rollout has missed several deadlines because of lack of consensus among states over certain crucial issues on the new tax regime. States have been demanding that petroleum, alcohol and tobacco should be kept out of the purview of GST.
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.