India: GST Bill

सरदार पटेल ने जिस तरह भारतका राजनीतिक एकीकरण किया और उनको बिस्मार्क कहा जाता है, उसी तरह अरुण जेटली भारत का आर्थिक एकीकरण करना चाहते हैं इस GST Bill के रास्ते। तो देरी किस बात की? काँग्रेस कहती है ये बिल तो पहले हम लाए। आप लाए तो पास करने में और आसानी होनी चाहिए। दोनों मिल के क्रेडिट ले लो। लेकिन पास तो करो।

What is the GST Bill? What does it mean to you and me? The Good and Services tax in the biggest indirect tax reform since 1947 and it has potential to lead the economic integration of India.

This will be levied on manufacture sale and consumption of goods and services. ...... the GST bill will lead to the economic integration of India. ..... The main function of the GST is to transform India into a uniform market by breaking the current fiscal barrier between states. Thus the GST will facilitate a uniform tax levied on goods and services across the country. ..... Currently, the indirect tax system in India is complicated with overlapping taxes levied by the Centre and the State separately. ..... two components- the Central GST and the State GST. They will both have separate powers to legislate and administer their respective taxes. Thus equally empowering both. ....... Taxes such as excise duty, service, central sales tax, VAT ( value added tax), entry tax or octroi will all be subsumed by the GST under a single umbrella. ..... With passing of the GST bill, we can expect a climate of improved tax compliance...... Thus, the GST will basically have only three kinds of taxes, Central, State and another called the integrated GST to tackle inter-state transactions........ The first mention of the bill was in 2009 when the previous UPA government opened a discussion on it. ...... the current challenge facing the bill is that it needs two-third majority of both houses and 50 percent of the state assemblies will have to ratify it. ..... the GST will be instrumental in helping the GDP of India to grow by 2 percent. ......

The GST also offers a solution to the multinationals as it breaks down the indirect tax structure into one single tax payable by the companies.

Ten things to know about the GST Bill

The Bill seeks to shift the restriction on States for taxing the sale or purchase of goods to the supply of goods or services. ...... The GST Council will be the body that decides which taxes levied by the Centre, States and local bodies will go into the GST; which goods and services will be subjected to GST; and the basis and the rates at which GST will be applied. ......... The Centre will levy an additional one per cent tax on the supply of goods in the course of inter-State trade, which will go to the States for two years or till when the GST Council decides. ..... Parliament can decide on compensating States for up to a five-year period if States incur losses by implementation of GST.

GST will be cleared in 15 minutes if govt agrees to our terms, says Rahul
At the core of the dispute between the ruling party and the principal Opposition party is not just the demand for a constitutional cap on the GST median rate, as it is called, but also two other conditions put forward by the Congress.

“We don’t want a GST Bill where there is no cap on taxes. We want a limitation on the maximum tax people can be charged with.” ....... The Congress has demanded withdrawal of an additional one per cent tax on inter-state movement of goods, which has been proposed to provide comfort to manufacturing states that fear a loss of revenue. The party has also demanded a dispute resolution panel headed by a Supreme Court judge. ....... Stating that the GST legislation was conceptualised by his party, Rahul said: “For seven years, Jaitley didn’t allow it to pass. The current Prime Minister, when he was chief minister, too, didn’t allow it to pass. The BJP blocked everything. It has never been the strategy of the Congress to block Parliament.” .......

“This government doesn’t believe in a conversation”

, he said, adding that a compromise on GST was possible. “It is sitting on the table. But the government is not taking it,’ he said. He said that work is yet to begin on the necessary infrastructure that can make GST work. - ........ The Congress has hit back, pointing out that some of its concerns were reflected in the report of Chief Economic Advisor Arvind Subramanian on GST.

Related articles

• Maharashtra, UP show India what to expect from GST
• Jaitley says govt is open to scrapping 1% additional tax on GST
• Arun Jaitley says ready to consider scrapping 1% manufacturing tax, hints at lower-than-18% GST rate
• India's 2015-16 GDP outlook revised downwards to 7-7.5%
• Early GST rollout to help create more jobs, boost output: IMF
• India lowers growth forecast for 2015/16 to 7-7.5%
• Fresh push for GST: Jaitley, Naidu meet Congress leaders
• The Road To Nowhere: SAARC At 30 - Analysis
• Arun Jaitley rules out including GST rate in constitution bill
• Jaitley appeals to Congress for support on GST

ये क्या हो रहा है? American Style Gridlock?

ऐसे देश १०% तरफ नहीं जाएगी। जिस देशमें इनकम टैक्स ठोस नहीं है वहाँ सरलीकृत सेल्स टैक्स का होना बहुत जरुरी है। Informal sector को भी समेट लेती है।



Indian Politics Thwart Prime Minister Narendra Modi’s Tax-Reform Plans For the second time this year, India concludes its Parliament session without legislating a nationwide sales tax

Partisan bickering in India’s Parliament has stalled an important piece of Prime Minister Narendra Modi’s economic agenda: a constitutional amendment that would create a simplified nationwide tax system to replace a commerce-stifling patchwork of state levies. .... The winter session of India’s legislature ended Wednesday without a vote on the measure in the upper house, where Mr. Modi’s Bharatiya Janata Party is in the minority, after lawmakers spent weeks trading jabs over graft allegations involving top politicians. .....

“The economy suffers while politics overrides everything.”

..... Facing opposition protests and fearing a rural backlash ahead of the Bihar vote, Mr. Modi in August retreated from legislative efforts to ease India’s strict land-acquisition law and make it easier for the government to get land for industry and infrastructure. ..... The gridlock is the result, in part, of a tit-for-tat strategy by the main opposition Congress party, whose final years in power were marred by protests led by the BJP.

When Congress was in government, the BJP blocked tax legislation similar to what it is now trying to pass.

..... With major plans stymied in Parliament, Mr. Modi has sought to breathe life into the economy through executive actions and other moves, including a plan to revive heavily-indebted power-distribution companies and ease foreign-investment limits in some industries. .... Congress accused Mr. Modi of a political vendetta after the party’s president, Sonia Gandhi, and her son, Rahul, were summoned before a magistrate to answer a complaint alleging cheating and criminal breach of trust. ..... Emerging from court Saturday, Mr. Gandhi said Mr. Modi had encouraged “false allegations” to frighten political rivals. The government said it wasn’t involved in the case. The complaint was filed by politician Subramanian Swamy in 2012. He later joined the BJP. .....

‘Parliament has become a forum less for debate and more to settle political scores.’

—M.R. Madhavan, president of think tank PRS Legislative Research ...... A post on Mr. Kejriwal’s official Twitter account called Mr. Modi a “coward and a psychopath.” The episode spiraled to include corruption allegations by Mr. Kejriwal against BJP Finance Minister Arun Jaitley, who in turn filed a defamation suit against Mr. Kejriwal. ......

These much publicized spats narrowed the space for a political compromise needed to break the logjam on economic policy-making.

..... On the tax amendment, Congress has said it doesn’t support some key provisions. It argues the tax rate should be capped at 18%—and that number must be included explicitly in the constitution—to prevent a creeping increase by future governments...... It also wants to do away with a proposed 1% additional levy designed to help manufacturing states....... Mr. Jaitley said the government is willing to find ways to address Congress’s second demand, but won’t legislate the tax rate so future governments have flexibility.

Five Things to Know About India’s Proposed Goods and Services Tax

India’s government is attempting to reform its messy web of sales taxes to make doing business across the country easier. ........ This complicated web snarls companies in red tape and slows down the transit of goods around the country because of border checks and other official inspections. ...... replace the patchwork of taxes with a single, nationwide sales levy, known as the goods-and-services tax, or GST.

Economists call the move an epochal lowering of commercial barriers.

..... a broad GST would deliver an immediate boost to output of 1% to 2% and lasting gains to productivity. .....

The bill needs the consent of two-thirds of Parliament and half of India’s 29 states.

Finance Minister Arun Jaitley wants the new system up and running by April 2016, saying it will “play a transformative role in the way our economy functions.” .......

States with large manufacturing bases have been wary of the GST: Receipts from the new tax would go to states where goods and services are consumed, not where they are produced.

........ The Modi government in December agreed to compensate states for lost revenue during the levy’s first five years, and to let them continue taxing alcohol and petroleum separately. Some experts say these and other possible exemptions would curb the GST’s effectiveness, however. ...... Jaitley told lawmakers on Wednesday that the standardized national rate for GST would be “much more diluted” than the 27% estimated