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Taxes As the future of the Goods and Services Tax is still uncertain in India but our efforts to elaborate the broad concept of GST will continue in the same manner. Even after facing such a huge setback, our Finance Minister Mr. Pranab Mukherjee is leaving no efforts from his side for the successful implementation of the GST. GST would be one of the most significant fiscal reforms of independent India. It is expected to replace all indirect taxes, thus avoiding multiple layers of Taxation that currently exist in India. There are some key issues which are creating a hurdle in the rolling out of the Goods and Services tax. Among these one is the Threshold Level. The Centre wants to have a uniform limit of threshold for GST i.e. Rs 10 lakhs for both Centre and states. On the other hand, states want different threshold level for SGST and CGST. The states have been asking for a threshold of Rs 10, 00,000 for SGST and Rs 1.5 crore for CGST . The Finance Ministry is looking forward to reduce the threshold for exemption from the current Rs 1.5 crore as the budget could widen the excise duty net to include more small & medium Enterprises (SMEs). However, a finance ministry official said while the Budget would reduce the exemption limit, it would not be brought down to Rs 10 lakh. A new threshold would have major tax implications for SMEs, as all businesses with an annual turnover above the limit would be required to pay excise duty. States are of the opinion that a uniform threshold of Rs 10 lakh would adversely affect the interests of small scale industries. Furthermore, while a lower threshold would boost the Centres revenue collections, states say it would hurt the .petitiveness of SMEs, forcing some of them to even close their industries and render their workers unemployed. On the other hand, the Centre feels that instead of dual structure, businesses with a turnover below Rs 1.5 crore could be .pensated with simplified and reduced paperwork. These businesses may not be required to file returns frequently; their registration process could be made easier. Unless and until no Consensus is build on the Draft of the Constitution Amendment Bill, all other works regarding Goods and Service Tax are of no use. So for the time being the main focus of the Finance Ministry will be on the sorting out of the differences between the Centre and the States on the Draft so that a consensus is formed that will help in the smooth implementation of the Goods and services Tax. About the Author: 相关的主题文章: