GST: Manufacturers assured
Taxes on manufactured goods will be brought down under the Goods and Services Tax (GST) from as high as 30% at present taxation regime, Finance Minister Arun Jaitley has assured manufacturer.
He said the bill had enough provisions to help the manufacturing states, including Gujarat, Maharashtra, Karnataka, Madhya Pradesh and Tamil Nadu.
Presently the government imposed 12.5% excise 80 per cent of the goods while states levies sales tax on 27% of the goods.
The GST seeks to subsume these taxes and bring them down to an acceptable level, he said.
Prime Minister Narendra Modi has also assured that GST would bring uniformity in taxes and be favourable to consumers.
The GST would also help bring in real time data, as its strength was in technology, he told parliament on August 8, 2016.
He said most of the things that can impact consumer inflation have been kept out of the ambit of GST which would help reduce corruption in collection, as well as the cost of collection.
Small businesses will also gain tremendously from GST, added the Prime Minister, assuring the Government is focusing on economic and educational empowerment of the poor and mitigate poverty.
“Close to 55% of the food items and medicines will not be taxed under the GST,” and avoid inflation, said Modi.
Traders would be compelled to give proper bills to consumers and help fight corruption and black money.
“The GST will strive to free India from tax terrorism,” Modi said, allying fears it would raise inflation and hit the common man.
“The GST will strive to free India from tax terrorism,” Modi assured.
The bill, passed by the Lok Sabha (Lower House) on August 8, will now go through state assemblies. fii-news.com
