New Delhi, Sep 1 (IANS): The Goods and Services Tax (GST) Bill ratified by 15 States, awaits the magical number of 16 before it is sent to the President for his assent.
After Goa became the 15th State to ratify the GST Bill on Wednesday, decks would have already been cleared for presidential assent had the West Bengal government moved for its ratification earlier this week. It did not do so at a one-day special session on Monday, citing "time constraints".
Indications though suggest that the pan-India overhaul of India's indirect tax regime will get the mandatory support of more than half the States very soon. It could well be much earlier than the Centre's targeted deadline of rolling out the GST Bill by the start of the next fiscal on April 1, 2017.
Meanwhile, at a meeting here with the Empowered Committee of State Finance Ministers on GST on Monday, India Inc pitched for an 18 per cent standard rate. They said this rate would generate adequate tax buoyancy without fuelling inflation.
Industry chambers also told State Finance Ministers that the new tax be implemented after a minimum of 6 months from the date of adoption of the GST law by the GST Council.
The Federation of Indian Chambers of Commerce and Industry (FICCI) suggested that to check inflation and the tendency to evade taxes "the merit rate should be lower and the standard rate should be reasonable".
"As per current indications and reports, goods will be categorised as being subject to merit rates (12 per cent), standard rates (18 per cent) and de-merit rates (40 per cent)," FICCI said in a release following a meeting here with the Empowered Committee. "Certain goods will be exempted from GST while bullion and jewellery would be charged to one-two per cent," it said regarding classification of goods for applying GST rates.
On implementing GST, FICCI said that in order to provide adequate time to trade and industry to prepare "for a hassle-free roll out of the GST regime", a minimum of 6 months time should be permitted from the date of the adoption of the GST Law by the GST Council. "Additional time would be required in case the GST Law as passed by Parliament or State legislatures is significantly different from the one adopted by the GST Council," the statement added.
In a meeting here with Revenue Secretary Hasmukh Adhia last month, industry chambers had raised concerns on the draft GST law, flagging issues like dual administrative control and wide discretionary powers for tax authorities.