Watch CNBC-TV18's Shereen Bhan in conversation with panel of experts where they discussed the road ahead for GST after Finance Minister, Arun Jaitley, tabled the GST legislations in parliament today.
The FM's statement that GST implementation is tectonic and epoch, with limited indirect tax changes and no change in service tax rate underlines their resolve to implement GST in 2017.
Approving the revised Goods and Services Tax (GST) draft law in the upcoming Council meeting on November 24 and 25 is more crucial than the sorting out of the dual-control concerns raised by certain states, Pratik Jain, Leader-Indirect Tax at PwC India tells CNBC-TV18.
The GST Council will have to avoid the temptation of adding more goods into the 26 percent slab, says Harishanker Subramaniam, Partner & National Leader - Indirect Tax, EY. He says keeping rates low could become a challenge if the Council does not fix the standard Goods and Services Tax (GST) rate at 18 percent.
The Goods and Services Tax (GST) Council headed by Finance Minister Arun Jaitley Tuesday discussed multiple tax rates under the new tax regime.
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.
The fact that the Centre will only govern GST on services is a good move as it will take time to train the states, till then it makes sense for the Centre to administer GST on services, says Harishanker Subramaniam of EY.
In a country the size of India, there cannot be a goods and services tax (GST) rate higher than 18-20 percent, says Harishanker Subramaniam, Partner, Ernst & Young. India being such a vast nation, compliance is certainly going to be an issue.
It is further speculated that e-commerce players might have to move from single registration to multiple registrations across each state under GST, thereby increasing compliance costs.
By: Harishanker Subramaniam, EY India
The two percent CST will be an integrated GST (IGST) which will be fully creditable by the dealer when he sells the car in the other state, Harishanker Subramaniam, national leader - indirect tax, EY, says
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