Govt to resolve issues related to Goods and Services Tax roll-out within this yearDate : 1st August 2014
Finance Minister Arun Jaitley has said the government is aiming to resolve the issues hampering the roll out of Goods and Services Tax (GST) within this year.
"The government targets to find a solution in the course of this year and approve the legislative scheme which enables the introduction of GST," he said during Question Hour in Lok Sabha on Friday. Asserting that government is "willing to take a pragmatic view", Jaitley said it does not want a "token GST, but a substantial GST... There should be consensus (with states)".
He assured the House that no decision on GST introduction will be taken without consulting the states. Government has also assured states that it will compensate for any revenue loss incurred by them, from the date of introduction of GST, for a period of three years.
Referring to GST implementation, Jaitley said: "Time has come for pragmatic approach...one or two exceptions the government can consider. If too many taxes are excluded, the objectives of GST will not succeed...It (GST) is a good cause that everybody fall in line,"
The Finance Minister said various issues such as compensation to states, rate of taxation and possible exemptions are all on the drawing board. "States' concerns with regard to the GST mainly relate to loss of revenue, fiscal autonomy, compensation, keeping certain items out of GST, subsuming of certain taxes in GST etc," Jaitley said.
Certain states may face problems in initial stages of GST implementation. GST proposals would help in spurring growth and employment.
Source : Business Today, Economic Times
IT firms seek clarity on GST implementationDate : 7th July 2014
Technology companies are looking for more clarity on implementation of GST, tax on software licences and thrust on developing infrastructure in small cities in the first budget of new government led by prime minister Narendra Modi.
Technology majors like Microsoft and BlackBerry, software services firms and industry bodies like Nasscom expect the Modi government to focus on leveraging ICT for economic growth and maximising the reach of policies.The government has already indicated boosting indigenous electronics manufacturing to check dependence on imports and has said that electronic manufacturing will be a priority.
Source : Times of India