Tuesday, 25 February 2014

Goods and Service Tax will be reality soon

Goods and Service Tax will be reality soon: JD Seelam
Despite failing to get the Goods and Service Tax bill passed, government expressed the
hope today that the proposed comprehensive indirect tax reforms would see the light of
day in near future.
"I hope that good sense will prevail and GST will be a reality," Minister of State for
Finance J D Seelam said at a function organised by Central Board of Excise and
Customs.
"I wish that we would have got the required political support. We spoke to finance
 minister of different states. It is unfortunate that we could not get the required
 consensus," he said.
 The government in 2011 introduced a Constitution Amendment Bill in the Lok Sabha
 which seeks to pave the way for the GST regime, which aims at subsuming most of the
 indirect taxes at the central as well as the state level. The Bill could not be passed due to
 lack of consensus.
 GST, which seeks to subsume various indirect taxes like excise, sales and service tax,
 was proposed by the Atal Bihari Vajpayee-led NDA government and subsequently
 supported by Congress-led UPA government.
 Seelam said tax officials should be facilitators rather than just tax administrators.
 He also said that tax administration needs to be tax-payer friendly and the system should
 be stable so that entrepreneurs know well in advance about their liabilities, making it
 easier for them to make provisions accordingly.
 There is a need to widen the tax base, he said, adding that there is need to simplify the tax
  procedure and make it more transparent.
 Speaking on the occasion Finance Secretary Sumit Bose said GST is the next major step
  which all stakeholders are waiting for and a lot of hard work has gone into making the
  proposals.
 "We are ready for taking a step to introduce GST in the country. I think it will happen
  soon and everyone has been working towards it," Bose said.
  Some streamlining of processes and procedures in service tax and excise duties is being
  done in order to pave the way for GST, the Secretary said.
 "GST, when it comes, would be a game changer and we are working towards central
  government and state governments in their own way," he added.
  GST is touted as a more efficient taxation system that is likely to increase tax revenues
  and widen the tax net.
 
   (Economic Times) 

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