Comments
There is a good possibility that Goods and Services Tax (GST) might come in by April 2013, the Chairman of the Central Board of Excise and Customs (CBEC), said here.
Speaking at an interactive session organised by the Bangalore Chamber of Industry and Commerce, Mr S.K. Goel, Chairman, CBEC, said Parliament has to take up the constitutional amendment Bill, and clear it with the required majority.
“If 50 per cent of the States approve the Bill, then, the legislation for the GST implementation has to be passed by the Central Government and the States. If things go smoothly, April 2013 should be possible,” he explained.
The CBEC is working on the GST network and the model legislation required for the implementation of GST, and also on the business processes which need to be followed, he said. “If all stake-holders cooperate, it (roll-out) should be possible by April 2013,” he added.
GST network
On the Finance Minister's announcement that the GST network will be implemented by August, Mr Goel said, “The GST network is very much in the making. The Cabinet has already approved setting up of an SPV for the national information utility for the purpose of implementing the GST network.” According to him, the CBEC was working on pilots in 11 States.
Impact on inflation
On the two per cent increase in service tax in the Budget this year, Mr Goel said the industry was in a position to deal with the hike.
“We expect the two per cent increase in service tax will not lead to an increase in inflation,” he said, adding that low rate of taxes was also not good for economic growth.
On whether taxation for packaged software would be as goods or services or both, he said efforts to make a distinction for certain items such as packaged software that have both aspects — goods and services — were on. New representations are being examined, he pointed out.
“We are clear we don't want to levy two taxes on the same item simultaneously. Further clarifications are required. We are hopeful that the GST will clear all these issues,” he added.
Kingfisher issue
Answering media queries on Kingfisher Airlines' service tax dues on the sidelines, Mr Goel said the airline has paid Rs 60 crore till March 31. “Some dues are pending from them — may be around Rs 60 crore,” he said, adding that he expected them to clear it at the earliest.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.