Tobacco Free Kerala, a state-based outfit, along with other tobacco control groups in the country, have appealed for the highest tax on tobacco to the GST council.
In signs of fracture, the Centre and states today disagreed on decisions reached at the first meeting of the GST Council on service tax assessment although they reached a consensus on area based exemption in the new tax regime.
To be chaired by Union Finance Minister Arun Jaitley, the Council will also deliberate on a formula for payment of compensation to states for revenue loss in the aftermath of implementation of the GST.
Lesser the number of exemptions, the better it will be as each exemption distorts structure of the tax regime says, Najib Shah, Chairman of Central Board of Excise and Customs in a CNBC-TV18 special series, in association with Ministry of Finance, on how GST will impact the economy and our lives.
Pratik Jain, leader of indirect tax division at PricewaterhouseCoopers termed most of the draft GST rules as positive. Commenting of the Centre‘s efforts Jain said it is one of the rare times when the government is running faster than the industry.
Moving on fast track to meet the April 2017 GST rollout deadline, the tax department today came out with draft rules relating to registration, invoice and payment which will be finalised by the GST Council on Friday.
In less than a week after the first meeting of the GST Council, the tax department today came out with three draft rules and their formats relating to registration, invoice and payments which would be finalised by week-end.
A decision on contentious issues like exemption and threshold taken with consensus without voting in the first meeting of GST Council signals that the April 2017 rollout deadline is achievable, experts said.
At the first meeting of the GST Council, states proposed certain formulae based on their revenues for calculating compensation while the Centre proposed compensating states if the revenue growth rate falls below 12 percent.
Malkani said the domestic hospitality industry pays tax in the range of 18-25 percent, which includes luxury tax and service tax, while in countries like Malaysia, Sri Lanka and Thailand, it is not more than 5 percent.
The council will be chaired by Union Finance Minister and have Minister in charge of Finance or Taxation or any other Minister nominated by each State Government as its member.
The government is leaving no stone unturned to ensure smooth implementation of the Goods and Services Tax (GST) from April 1 2017.
The GST Council will consist of Union Finance Minister, Minister of State in charge of Revenue Department and state finance ministers, government's official spokesperson tweeted after the Cabinet meeting headed by Prime Minister Narendra Modi.
Following the President's assent to constitutional amendment enabling the rollout of the Goods and Services Tax Bill, the Union Cabinet is likely to take up the constitution of the GST Council in its meeting on Monday, reports CNBC-TV18‘s Sapna Das.
Apex indirect tax body CBEC will be renamed as the Central Board of Indirect Tax (CBIT) once the new national tax framework kicks in from April 1 next year, as per the draft dealing in GST organisational structure prepared by the Centre.
With landmark Goods and Services Tax (GST) now a law, President Pranab Mukherjee today hoped the government will set up a GST Council soon and reduce cascading effect of indirect taxes.
With GST Bill getting presidential nod, the government has started the process of setting up GST Council and the proposal is likely to be taken up by the Cabinet next week.
Consumers may have to pay more for travel and holidays in the short-term when GST is implemented, but in the long-run they will benefit following removal of duplication of tax incidences on hotels and airlines, according to travel service providers.
Finance Minister Arun Jaitley ruled out including the GST rate in the Constitution Amendment Bill saying tariffs can't be cast in stone. He said the Congress, which has opposed the GST Bill over three main demands, should accept the UPA Finance Minister P Chidambaram's proposal for a GST Council or its appointed forum for resolving tax disputes.
FM Arun Jaitley put a premium on training of officers, capacity building and interaction with state governments for effective implementation of GST.
However, still keen to ensure passage of the GST bill, Centre is keeping its option open of reconvening the session with the Cabinet Committee on Parliamentary Affairs on Thursday deciding not to recommend immediate prorogation of the Houses after they are adjourned sine die.
On Congress stalling the GST Bill in Rajya Sabha, Mani, the Finance Minister in the Congress led United Democratic Front government in Kerala, said: "There is no protest against the Bill. Protest is for a different issue."
Acknowledging that there may be merit in Congress‘ demand for 18 per cent rate of GST, he said the NDA government has â€œnot made any significant modificationsâ€ to the bill that the Congress-led UPA government had proposed in 2006-07 Budget, â€œexcept to bring a consensus between manufacturing and the consuming statesâ€.
The Rajya Sabha Select Committee has suggested that the Goods and Services Tax (GST) rate should not go beyond 20 percent as higher rates could fuel inflation and erode the confidence of consumers in a new indirect tax regime proposed to be rolled out on April 1, 2016.
Goods & Services Tax (GST) will be a game changer for the Indian economy. The new tax regime can lead to efficient resource allocation within the economy, improve tax compliance and positively impact GDP growth.