India Inc hails passage of GST Bill, hopes for April 1 rollout
- GST will bring in much-needed transparency and higher investments in the coming years: CII director general Chandrajit Banerjee
- It will enhance production possibilities in manufacturing sector and expand the growth trajectory of services sector: PHD Chamber of Commerce president Mahesh Gupta
NEW DELHI: Hailing the passage of
GST Bill in Lok Sabha , India Inc on Monday said it sees a possibility of rollout of the indirect tax reform from April 1, ushering in more investments and boosting the country’s economic growth.
“With the passage of the bill, it is expected that implementation of GST with effect from April 1, 2017, will become a reality,” CII director general Chandrajit Banerjee said.
“GST will bring in
much-needed transparency and higher investments in the coming years and we hope that a few percentage points to India’s GDP will be added through higher tax revenue and investments,” he added.
GST, billed as the biggest economic reform since 1991, will replace a raft of different state and local taxes with a single unified value added tax system to turn the country into world’s biggest single market.
The bill has to be ratified by at least 16 states in 30 days after it is passed by Parliament.
“It will enhance production possibilities in manufacturing sector and expand the growth trajectory of services sector, attract large chunk of foreign investments and create millions of new employment opportunities in the economy,” PHD Chamber of Commerce president Mahesh Gupta said.
Once implemented, GST will subsume various taxes including excise, services tax, octroi and other levies, and the proceeds will be shared between the Centre and the states.
Under the new regime, goods would be taxed at the point of consumption, instead of the goods being taxed multiple times at different rates.
Assocham Secretary General D S Rawat termed it as a “big bang reform” and expressed the confidence that the run-up to the real implementation would be smooth.
However, engineering exporters’ body EEPC India Chairman TS Bhasin said the implementation of GST should be done in a manner to avoid procedural difficulties for exporters.
“Instead of first paying the taxes and then claiming credit for the same, the proposed enabling GST law should exempt exporters from the taxation net since the country does not want to export taxes,” he suggested.
GST, which was first proposed a decade back, is seen as potentially transformative for India’s economy, adding as much as 2 percentage points to the GDP while also improving the ease of doing business and encourage investment in manufacturing.
It is also expected to result in greater tax compliance, boosting government revenues.
historic step for tax reforms+
. Prime Minister Narendra Modi said GST was “crucial” for ending tax terrorism besides reducing corruption and black money.
The GST will make consumer the “king”,
PM Narendra Modi speaks on GST in Lok Sabha: Top quotes
1.It is our democracy and the maturity of political leaders that we have been able to pass the GST Bill in one voice2.PM Modi spells out the 5Ms of economic progress: Man, Machine, Material, Money and Minute3.Lok Tantra (democracy) is not just a game of mandate, it is also a journey of forming consensus4.‘Rashtraneeti’ is bigger than ‘Rajneeti’5.GST will send across a message that ‘Consumer is the King’6.GST will bring “freedom from tax terrorism”7.‘Faith’ very important to strengthen federal structure of India. GST will act as a catalyst in this regard8.
What is GST? PM Modi explains:
GST: Great Step by Team India
GST: Great Step towards Transformation GST: Great Step towards Transparency
thanking all parties for their support to the Bill.
GST: Great Step towards Transformation
GST: Great Step towards Transparency9.It is a win for democratic ethos of India and a victory for everyone10.It is true that someone gives birth while someone else nurtures it. GST is not the victory of a particular political partyPM Modi said+
The Constitution (122nd Amendment) Bill, which was passed by the Lok Sabha in May 2015, was taken up again by the Lower House to approve the changes made in it by the Rajya Sabha last week.
The government had moved six official amendments, including scrapping of 1 per cent additional tax, to the bill which were approved by the Upper House.
After a six-hour debate, the Lower House passed the bill with all the 443 members present voting in favour after AIADMK members staged a walkout while opposing the measure.
PM Narendra Modi’s 5Ms for economic development
NEW DELHI: “Man, Machine, Material, Money and Minute,” these are the 5 Ms that can propel our economy and take it forward on the path of development, PM Modi said while discussing the GST Bill in Lok Sabha on Monday.
The economic development would be ushered in by the GST as the states in our country are not self sufficient but are interdependent and GST will boost economy of under developed States, the PM said.
Reiterating his colleagues, the PM said that consumer is the king and that GST would give the consumers “freedom from tax terrorism”. GST Bill is designed in such a way that the commodities used by the poor are outside the purview of taxation,” the PM added.
The GST was passed by the Rajya Sabha last week. While the Lok Sabha passed the GST Constitutional Amendment Bill in May 2015, the separate amendments to some its clauses that were proposed in the Upper House, will now be ratified in the Lower House.
The GST is a uniform indirect tax+ levied on goods and services that will be levied across the country and replace all the various taxes that are currently levied on goods and services.PM Modi+
, while intervening in the debate, said the passage of the Bill reflected “maturity” of the Indian democracy as such a crucial legislation was approved with consensus rather than on the basis of numbers.
He hailed it as a “great step by team India” that will help transform the economy, bring in transparency and bring in the system of “one country one tax”.
He emphasised that the passage of the bill by Parliament was not a victory of any party or government but was everybody’s victory as it highlighted the success of the democratic ethos of the country.
Jaitley, while replying to the debate, said the tax rate under the GST regime will be kept at “minimum workable rate” as no state government can annoy its people by having a higher rate. He said the rate will be decided by the GST Council.
He, however, virtually ruled out an assurance that the GST legislation will not be brought as Money Bill, a key demand of opposition Congress.
The bill will now have to be ratified by at least 16 of the 29 state assemblies, which the Prime Minister hoped would be done at the earliest.
“A memorable day for our democracy. Today we have taken a historic step in the journey to free the nation from the menace of tax terrorism,” the Prime Minister tweeted later.
“GST will benefit the consumer and small business, which are our nation’s strength. Due to GST transparency will be enhanced. Its a win-win,” he added.
Describing the passage of the bill as victory of democracy, Modi, while speaking in Lok Sabha, coined the GST in a new manner — ‘Great Step by Team India’, ‘Great Step towards Transformation’, ‘Great Step towards Transparency’.
Noting that the GST bill had been firmed up after thorough “churning of ideas”, he expressed happiness that it was being passed through an unprecedented consensus.
Modi said he had held consultations with his predecessor Manmohan Singh and Congress president Sonia Gandhi on the issue, giving equal importance to Rajya Sabha and Lok Sabha.
“Rashtra Niti (national interest) is above Raj Niti (politics),” he said, adding GST will prove to be a catalyst in strengthening trust between the Centre and the states as everything will be transparent.
“I thank all political parties, as also state governments run by different parties. We are taking such a decision … we have reached here after churning in Lok Sabha, Rajya Sabha, 29 states, their representatives and 90 parties. We are putting a stamp on the final decision,” he said.
Underlining that the development marks the “recognition of One India” and strengthens this concept, he said, “We are aligning ourselves with new taxation regime …. GST is a new ‘moti’ (bead) in this ‘maala’ (necklace).”
He said his government’s focus is economic and educational empowerment of the poor and mitigation of poverty.
Modi asserted that the GST will benefit mainly those states which are considered backward and address the problem of imbalanced development.
He acknowledged that manufacturing states will suffer losses but said they will be compensated.
“August 8th marks a crucial step towards freedom from tax terrorism,” the Prime Minister said, while recalling that this was the day in 1942 when Mahatma Gandhi had sounded the bugle of ‘Quit India’ which marked a major step towards the country’s Independence.
“GST can’t be seen as a victory of a party or government. It is the victory for democratic ethos of India and a victory for everyone,” he said, while noting that the measure was being supported by all parties, irrespective of different ideologies.
The Prime Minister said the new indirect taxation regime, which will subsume 7-13 taxes, will help end corruption as traders will be compelled to give proper bills and the consumer will be the “king”.
It will also help reduce the problem of black money and lead to generation of jobs by benefitting the small traders and entrepreneurs, he said.
Talking about benefits of GST, Modi said it will usher in simplification of procedures like filling of forms and bring about uniforminity of tax rates and processing.
Responding to Congress’ contention that GST was its idea being implemented by the NDA government, the Prime Minister acknowledged that all political parties and previous governments had contributed to making of the bill.
In this context, he quipped, “janam koi de, lalan palan koi kare. Krishna ko janam kisne diya, bada kisne kiya? (somebody may give birth, but someone else may nurture. Who gave birth to Lord Krishna and who brought him up?)”
At the same time, Modi said, “we do not have ‘guroor’ (arrogance) that his bill is the perfect one” even though “so many brains have made an effort which will have results”.
“It (making of GST) is a result of churning but it is true that we cannot be perfect and it cannot be ensured that in future there would not be any drawback,” he said.
Underlining that everyone dreams for “Ek Bharat Shreshtra Bharat’ (One India, Great India),” he said, “this is not just a taxation system but all states and the Centre will develop a system where small or big accept it.”
He expressed happiness that GST bill was not allowed to be politicised and rather became a national matter.
Rahul welcomes passage of GST Bill
Congress vice-president Rahul Gandhi said the passage of the Goods and Services Tax (GST) constitutional amendment bill is a good step for the country.
“I think it is a good step for the country,” Gandhi told reporters after the Lok Sabha unanimously passed the 122nd constitutional amendment bill, paving way for the implementation of the GST.
He further said the differences over the GST between the government and the Congress have narrowed down but the issue of 18 per cent cap is worrisome as it concerns inflation.
“We had earlier three major differences on the GST. We worked out the differences. There is one issue which is the 18 per cent issue and we feel that it is a very important issue. Because we are worried about inflation resulting from no cap. So now that’s discussion (will be) in December,” he said.
The constitutional amendment bill is an enabling legislation and the government will come out with a CGST and IGST Bill in the Winter Session of Parliament for implementing new tax regime which will subsume various indirect taxes.