Union Finance Minister Arun Jaitley hails GST as ‘efficient tax system to curb evasion’
Bengaluru/Karnataka, May 29: Hailing the Goods and Services Tax (GST) Bill as an efficient tax system for India, Union Finance Minister Arun Jaitley on Monday asserted that the new taxation regime will help in maintaining a strict vigil on tax evasion, thereby strengthening the Indian economy.
Addressing the gathering at the inauguration of the National Academy of Customs, Indirect Taxes and Narcotics (NACIN) campus here, Jaitley said the new tax regime, which is an amalgamation of all taxes levied on commodities, is slated to play a vital role in accounting for taxes.
Further, Jaitley stressed on the importance of coordination between the Central taxation authorities and its counterpart at the state level, adding that the two bodies will jointly monitor the tax regime.
“The GST is a product of federal India. The Centre and the states will jointly administer and decide the taxes. Coordination between taxation authority of the Centre and the states is also important. The training academy NACIN, which has come up in Bengaluru to impart training to officers of the central and state governments and public sector units (PSU), therefore, has a vital role to play,” he said.
In a meeting held earlier this month, Jaitley said the implementation of the GST will enable a more consumer-friendly taxation system, which will exempt daily-use commodities from the levy.
“Four different rate slab for services are five percent, 12 percent, standard rate of 18 percent and luxury rate of 28 percent, out of which five percent mostly comprises of transport services,” said Jaitley while addressing the media at the Council meeting in Srinagar.
The ‘all-inclusive’ GST bill has been passed in several State Assemblies, including those of Maharashtra, Odisha, Himachal Pradesh, Tripura, Goa, Madhya Pradesh and Uttar Pradesh, to name a few.
Hailed as a ‘revolutionary’ tax regime, the GST is said to be India’s biggest tax overhaul since independence in 1947. It will replace a slew of federal and state levies, transforming Asia’s third largest economy into a single market.
The GST is scheduled to be rolled out on July 1. (ANI)