Keeping an optimistic view from the much-awaited Goods and Services Tax (GST) regime, the Central Board of Excise and Customs (CBEC) is expecting an increment in tax figures. The CBEC Chairman Najib Shah has said that the ministry belief that the current level of tax will not be reduced for at least 5 years, it will remain same and noted that taxes are likely to increase a bit from the current level.
Shah pointing that the fitment of goods and services in the four tax slabs is under way, said that apart from the tax rates, there will also be a cess on top of it, which will form the corpus to compensate the states for any revenue loss for the first five years of implementation of GST and to which commodities will have the cess will be determined by the Council.
Shah expressed hope that the implementation of GST will lead to increase in GDP by 1-2 per cent and added that tax evasion should come down as all filings will be IT driven and evasion will get difficult. The CBEC Chairman also said that GST will ensure that the laws regarding the new indirect tax regime are finalised by April 1, so that the industry has three months to prepare for the transition.