Business Daily from THE HINDU group of publications
Sunday, Jun 14, 2009
ePaper | Mobile/PDA Version | Audio | Blogs
Business Daily from THE HINDU group of publications Sunday, Jun 14, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Industry & Economy
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Taxation Web Extras - Industry Associations Integrate all State taxes with GST: Assocham K.R. Srivats New Delhi, June 13 The proposed dual-GST (Goods and Services Tax) system should subsume State-level taxes on goods and services that are not currently covered by the Value Added Tax (VAT) regime, Mr Nihal Kothari, Chairman of Assocham’s indirect tax committee, has said. Some of the State taxes that are not still integrated within the VAT regime are entry tax, electricity duty, luxury tax, entertainment tax, octroi and stamp duty, he told Business Line. Legal bindingAssocham is also pitching for some form of legal binding on the GST framework, which is likely to be finalised in the coming days. Mr Kothari pointed out that some States such as Gujarat and Uttar Pradesh had moved away from the VAT rate structure that was agreed at the level of the Empowered Committee of State Finance Ministers on VAT. They had imposed new/additional taxes on sales and purchase turnover of goods. “The GST structure should have stability. This is essential to promote investment and maintain economic growth. That is why we are asking for some legal binding mechanism so that States don’t start levying new taxes/additional taxes,” he said. Aligning taxesAn Assocham paper on GST has also suggested that service tax and excise duty rate be aligned in the budget for 2009-10. Thereafter, central excise and service tax should be merged and replaced by central GST from April 2010. This would mark the consolidation of central taxes on goods and services.
Simultaneously, the countervailing customs duty on imported input materials can also be merged in the proposed central GST to complete the process of introducing a single central GST on goods and services by March 2010, the chamber has said. Mr Kothari also called for phase-out of central sales tax (CST), stating that any talk about introduction of GST would be meaningless without creating a common market by abolition of CST. More Stories on : Taxation | Industry Associations | States
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