Just a moment...

Report
FeedbackReport
×

By creating an account you can:

Logo TaxTMI
>
Feedback/Report an Error
Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
Make Most of Text Search
  1. Put words in double quotes for exact word search, eg: "income tax"
  2. Avoid noise words such as : 'and, of, the, a'
  3. Sort by Relevance to get the most relevant document.
  4. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
  5. Text Search
  6. The system will try to fetch results that contains ALL your words.
  7. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
  8. Text Search
Add to...
You have not created any category. Kindly create one to bookmark this item!
Create New Category
Hide
Title :
Description :
❮❮ Hide
Expand ❯❯
Close ✕
🔎 News - Adv. Search
    We will step in if there's mass exclusion in SIR of electoral rolls in Bihar: SC
    Russia kills 21 civilians in Ukraine as Kremlin remains defiant over Trump threats
    HIGHLIGHTS
    Crafting Bharat – S2, powered by AWS Startups and an initiative by NewsReach, launches its final episode with Goutam Kurumella of AWS India.
    Annual DHL Express ‘Rakhi Express’ Campaign Offers Discounts on International Shipments, Starting at INR 3,099* All Inclusive
    New ETC report demonstrates that wind and solar-dominant power systems are competitive, reliable, and technically and economically feasible
    SBI General Insurance Grows 2.4 Times Faster than the Industry with 21.5 Percentage Growth in Q1 FY 26
    Transforming Digital Infrastructure: How The Apollo University''s B.Tech. Programme Prepares Students for Success in Cloud Computing
    Asian shares mixed as investors focus on US trade talks with China
    Shanghai Cooperation Organization Media and Think Tank Summit Guests' Mianchi Tour: Experiencing the Charm of Yangshao Culture
    SCOTLAND TAKES CENTRE STAGE IN LANDMARK UK-INDIA TRADE DEAL
    ED raids former Vasai Virar Municipal Commissioner's premises in PMLA case
    Income of several farmers more than doubled: Chouhan
    SC stays trial in two cases involving Azam Khan's son Abdullah
    FPSB India, Bharat Chamber of Commerce ink pact to boost financial planning education
    NCLT allows Jagan's plea to cancel transfer of Saraswati Power shares to sister, mother
    Altizon Completes Strategic Migration to Microsoft Azure, Unlocking AI-Driven Productivity for Global Manufacturers
    Witness the Convergence of Furniture, Skill, and Design at INDEXPLUS Delhi 2025
    SC fixes timeline for considering pleas on SIR in Bihar; hearing to start from August 12
    Hilti Manufacturing India’s Vadodara Plant Awarded DGNB Gold Certification – a First for India

Are you sure you want to delete "My most important" ?

NOTE:

Back

All News

Showing Results for : Category : All
Reset Filters
Showing
Records
ExpandCollapse
    Back

    All News

    Showing Results for : Category : AllReset Filters
    Case ID :

    FM on GST

    December 14, 2010

    📋
    Contents
    Summary
    Note

    Note

    Note

    Bookmark

    print

    Print

    FM Expects Inflation to come down to 6 per cent by March, 2011 
    Govt willing To Consider a Phased Approach for Introduction of GST: FM 
    GST would Improve Tax Collections and Boost India's Economic Development: FM 
    GST to Encourage Consumer Friendly Product Pricing to Benefit Aam-Admi: FM 
    FM Inaugurates National Seminar on GST

    The Central Government, with a view to evolve a consensus, is willing to consider a phased approach for the introduction of GST, a step towards further consolidation of taxes on goods and services to achieve a genuine value added tax system at all levels in the country, stated the Union Finance Minister Shri Pranab Mukherjee, here today. In a departure from our earlier stand, as a transitory measure, we are also willing to accept a dual rate structure that could eventually lead to a "model GST regime", he added. The Finance Minister was addressing the inaugural session of a two-day National Seminar on 'Goods and Services Tax : Transition Issues', organised by the Comptroller & Auditor General of India.

               Highlighting Government's commitment to improve the efficiency and equity of the tax system, the Finance Minister said that proposed GST would improve tax collections and boost India's economic development by integrating the Indian market through a uniform tax rate. It will not only dismantle the complexities and non transparency in tax regime for goods and services but also encourage a consumer friendly product pricing that should benefit the aam-admisaid Shri Mukherjee.

    The Minister said that the Central Government has launched a mission mode project for computerization of commercial tax administration of States and UTs so that GST can be rolled out in a systematic and planned way. Shri Mukherjee expressed hope that the Empowered Group, set-up by the Central Government under the chairmanship of Shri Nandan Nilekani to finalize the design of appropriate IT system for GST regime, will give the country a state of the art IT platform to make tax administration in the country more efficient.

    Speaking to the mediapersons on the sidelines of the Seminar Shri Mukherjee said that the inflation is expected to come down to 6 per cent by March, 2011.

    The text of Finance Minister's inaugural address at the Seminar is as follows:

    "I am happy to be here at the inauguration of the Seminar on the Goods and Service Tax (GST). Let me start by congratulating the Comptroller and Auditor General of India for taking this timely initiative for bringing together the various stakeholders to deliberate on this issue when India's tax structure and its legal framework is being reviewed and is in the process of being finalized. I understand that the seminar seeks to focus on transition issues that would have to be addressed by tax administrators, both at the Centre and at the State levels, as they set out to implement the GST in due course. I am glad that this discussion is going to benefit from the participation of the auditors, who in turn will have some watchdog responsibility of seeing the implementation of the agreed tax reforms.

                The issue of the tax reforms was at the heart of the process of economic reforms and liberalization that the country embarked on in the early 1990s. We have come a long way since then. The tax reforms though gradual have been systemic in scope, particularly when you consider the proposals currently awaiting implementation. The reforms have covered both the direct taxes as well as the indirect taxes. The proposed Direct Taxes Code (DTC) brings together the policy initiatives on the direct taxes. In the field of indirect taxes, the MODAVT in 1986 provided a scheme for allowing relief to final manufacturers on the excise duty borne by their suppliers in respect of goods manufactured by them. It was followed by the CENVAT scheme. The VAT came into force in April 2005. The VAT was a major tax reform as it enabled rationalization of tax rates, reduced- to some extent- the compulsions for tax rate war among States and also moderated the cascading effect of taxes on commodities. More importantly, VAT was an effort at improving tax payer friendliness with greater faith being reposed in the tax payer. The implementation of VAT brought a steady increase in the revenues of the States.

                We are now hoping to take the next step by moving towards an economy-wide generalized system of goods and service taxes. From the current mixed system of taxation, both at the Centre and States, we are moving towards value added tax principle with input tax credit mechanism for taxation of goods and services. The proposed GST is a natural step towards further consolidation of taxes on goods and services to achieve a genuine value added tax system at all levels in the country. GST is likely to improve tax collections and boost India's economic development by integrating the Indian market through a uniform tax rate. As I have said earlier, it is a win-win situation for all stakeholders.

                These reforms have been necessitated by the changing nature and the rapid growth of our economy.  Indeed, the Government is committed to improve the efficiency and equity of the tax system, by eliminating distortions in the tax structure, introducing moderate levels of taxation, expanding the taxable base, promoting efficiency and equity while enhancing revenues and simplifying the language of the taxation provisions. The measures being considered in respect of the DTC as well as the GST will create for India a modern and more efficient tax system in the very near future. However, implementation of some of these measures is not going to be an easy process. That brings me to the theme of this seminar.

                I was happy to see the study carried out by Comptroller and Auditor General on the "Implementation of VAT in India- lessons for transition to Goods and Service Tax". It provides a very useful backdrop for this seminar. The report highlights the need for better preparedness on the administrative and legislative front before embarking on the implementation of tax proposals presently under consideration.

                One important issue brought out in the said study report is lack of required automation in commercial tax administration of State Governments. This is an issue that has been flagged for discussion in this seminar. The Central Government has recently launched a mission mode project for computerization of commercial tax administration of States and UTs. I am told that project proposals for 31 States have already been sanctioned with an overall cost of ₹ 975 crore. Around 70 per cent of the project cost is being borne by the Government of India. Some States like Maharashtra, Kerala, West Bengal and Rajasthan have been able to use these funds and successfully put in place modern IT systems as a part of their tax administration. These systems will support e-services like e-registration, e-payment, e-return filing, e-issue of 'C' forms and consequent convenience to the dealers and also help commercial tax departments of States and UTs to check tax evasion. It is heartening to note that these initiatives have been well received by tax payers in trade and industry, by the tax professionals and the banking sector. These IT systems once developed all over the country will provide the foundation on which GST can be rolled out in a systematic and planned way.

                The Central Government has also setup an Empowered Group under the chairmanship of Shri Nandan Nilekani to finalize the design of appropriate IT system for GST regime. I am sure that this Group will be able to give our country a state of the art IT platform which will contribute to making tax administration in the country more efficient.

                Introduction of the GST in the country requires not only a modern tax administration but also a large number of legislative changes including Constitutional Amendments. A draft of the Constitutional Amendments required for introduction of GST has been prepared and sent to the Empowered Committee of State Finance Ministers for seeking the views of the States. The Empowered Committee is discussing the draft to arrive at a consensus on the issue. It is my earnest hope that there will be a convergence of views on this draft so that the required bill for making these amendments could be introduced in the Parliament at the earliest.

                Efforts are being made in parallel to prepare Central GST legislation and model State GST legislation. A model State GST Legislation, in sync with Central GST Legislation and common processes to be followed by the Central as well as the State Governments will help in strengthening an integrated national market. That in turn should provide a further impetus to the growth momentum of our economy.

                On our part, with a view to evolve a consensus we have revised our position to accommodate the concerns of the State Governments. The Central Government is willing to consider a phased approach for the introduction of GST. In a departure from our earlier stand, as a transitory measure, we are also willing to accept a dual rate structure that could eventually lead to a "model GST regime". This ideal structure, as I have earlier said would be to adopt a single rate which is common for goods and services. A consensus is a must for implementation of the GST. The Centre has and will continue to take into account the concerns of the States and will work towards forging a common ground for introducing and implementing of this major tax reform.

                The GST's countless benefits will accrue to the country as a whole and especially to the States who talk of facing resource constraints. The GST aims to dismantle the complexities and non transparency in tax regime for goods and services. It encourage a consumer friendly product pricing that should benefit the aam-admi.

                The Seminar, as I understand, has experts on the subject from different streams including, academics, tax professional, stakeholders from trade and industry, the State Governments, the Central Government and the revenue auditors. I expect your deliberations to bring about greater clarity on all relevant issues on the subject. The concerns of both large and small taxpayers have to be taken into account for a successful implementation of the GST.

                Before I conclude I would like to place on record the contribution of Comptroller and Auditor General of India in drawing the attention of policy makers to revenue leakages on account of legal and administrative lacunas in the implementation of tax regime and for the insights to improve efficiency of tax administration in the country.  This effort, I hope would continue in the future.

     I wish you all successful deliberations and fruitful outcomes from this Seminar."

    Topics

    ActsIncome Tax