Kashmir hosts GST council meeting on new tax regime

Claudine Rigal
Mai 18, 2017

Union finance minister Arun Jaitley and his ministry officials as well as representatives of 29 states and Union Territories will be present at the meeting.

Patnaik further said that the enactment of the State Goods and Services Tax will mark the beginning of a journey.

The GST will be a national sales tax that will be levied on consumption of goods or use of services. Additional security forces have been deployed at the venue.

The TS government wants clarity on the items that will be exempted from GST in the crucial GST Council meeting to be held in Srinagar on May 18 and May 19.

With the GST, India will join select league of nations with a goods and service tax.

"GST council is the first federal institution in the country".

Since then Germany, Italy, the UK, South Korea, Japan, Canada and Australia have been among the over a dozen nations which have implemented the GST.

The states would receive provisional compensation from Centre for loss of revenue due to abolition of taxes such as VAT (value added tax), octroi and implementation of GST. Saudi Arabia plans to do it in 2018.

The GST is a destination-based single tax on the supply of goods and services from the manufacturer to the consumer and is one indirect tax for the entire country. Also, the Council is expected to give final approval to four sets of rules relating to input tax credit, valuation, transitional provisions and composition scheme, which were tentatively approved in the last meeting on March 31.

The government has chose to impose a cess on luxury and other goods with a cap of 15 per cent.

He said that as a large number of Central and State taxes will be subsumed into the GST, the cascading of taxes will be minimised and this will result in benefits to business and industry as well as consumers. The tax rates will also be decided keeping in mind their impact on inflation.

Currently, there are 17 items in the negative list of services on which service tax is not levied. On top of that there are over 60 services, like religious pilgrimage, healthcare, education, skill development, journalistic activities, which are exempt from service tax. "The GST law will boost the country's GDP growth by 2 per cent".

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