TMI BlogGST in Budget 2015X X X X Extracts X X X X X X X X Extracts X X X X ..... GST in Budget 2015 - By: - Deepak Aggarwal - Goods and Services Tax - GST - Dated:- 2-3-2015 - - Goods and Services Tax (GST) Here are the relevant extract of GST reference in Budget speech 2015 and other budget documents - We are now embarked on two more game changing reforms. GST and what the Economic Survey has called the JAM Trinity - Jan Dhan, Aadhar and Mobile - to implem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent direct transfer of benefits. GST will put in place a stateof-the-art indirect tax system by 1st April, 2016. The JAM Trinity will allow us to transfer benefits in a leakage-proof, well-targetted and cashless manner. We need to revive growth and investment to ensure that more jobs are created for our youth and benefits of development reach millions of our poor. We need an enabling tax policy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for this. I have already introduced the Bill to amend the Constitution of India for Goods and Services Tax (GST) in the last Session of this august House. GST is expected to play a transformative role in the way our economy functions. It will add buoyancy to our economy by developing a common Indian market and reducing the cascading effect on the cost of goods and services. We are moving in vario ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us fronts to implement GST from the next year. As part of the movement towards GST, I propose to subsume the Education Cess and the Secondary and Higher Education Cess in Central Excise duty. In effect, the general rate of Central Excise Duty of 12.36% including the cesses is being rounded off to 12.5%. I also propose to revise the specific rates of Central Excise duty in certain other commodit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies, as detailed in the Annexure. However, in the case of petrol and diesel such specific rates are being revised only to the extent of subsuming the quantum of education cess presently levied on them, keeping the total incidence of excise duties unchanged. The ad-valorem rates of excise duty lower than 12% and those higher than 12% with a few exceptions are not being increased. Some changes are a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso being made to excise levy on cigarettes and the compounded levy scheme applicable to pan masala, gutkha and certain other tobacco products. Introduction of GST is eagerly awaited by Trade and Industry. To facilitate a smooth transition to levy of tax on services by both the Centre and the States, it is proposed to increase the present rate of service tax plus education cesses from 12.36% to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a consolidated rate of 14%. Hassle Free Business Environment: Created a non-adversarial tax regime, ending tax terrorism; Secured the political agreement on the goods and services tax (GST), that will allow legislative passage of the constitutional amendment bill. The debate whether to introduce a Goods and Services Tax (GST) must now come to an end. We have discussed the issue for the past ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... many years. Some States have been apprehensive about surrendering their taxation jurisdiction; others want to be adequately compensated. I have discussed the matter with the States both individually and collectively. I do hope we are able to find a solution in the course of this year and approve the legislative scheme which enables the introduction of GST. This will streamline the tax administrat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, avoid harassment of the business and result in higher revenue collection both for the Centre and the States. I assure all States that government will be more than fair in dealing with them. The performance of key industrial sectors based on the Index of Industrial Production (IIP) reveals the reversal in trends of industrial production in 2014-15, which had slowed down since 2011-12. The r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evival of manufacturing sector has been unleashed in the Make-in-India initiative accompanied with several other initiatives of the Government. The growth momentum is likely to be continued in FY 2015-16 as well. Turnaround in economic activity expected in FY 2015-16 with the improvement in industrial, manufacturing and service industry, growth in exports and expectation of recovery of growth ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te will provide a scope for achieving the budget targets in FY 2015-16 14. In the medium term, the most significant step from the point of view of broadening the tax base and improving revenue efficiency through better compliance is the introduction of Goods and Services Tax (GST). As far as Central taxes viz. Central Excise duties and Service Tax are concerned, a fair amount of integration has al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ready been achieved, especially through the cross-flow of credits across the two taxes. It would be possible to realize full integration of the taxation of goods and services only when the State VAT is also subsumed and a full-fledged GST is launched. As a preparation for introduction of Goods and Service Tax (GST), Government has been taking consistent policy steps to expand the scope of service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax. To broaden the tax base, negative list approach to taxation of services was introduced with effect from 1st July, 2012. Negative List of Services and service tax exemptions were reviewed for broadening the tax base and also as a preparation for introduction of GST. - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... management - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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