States want India Inc to pass on the benefits of a likely lower Goods and Services Tax to consumers, turning the tables on the industry, which had sought a moderate tax rate and fewer compliance requirements.
Industry has favoured a standard GST rate of 18%, which it said would lead to tax buoyancy. “Some states wanted to know from the industry that is demanding moderate rate as to how they will ensure that the benefit is passed on to consumers,” said Amit Mitra, finance minister of West Bengal and chairman of the empowered committee of state finance ministers.
GST, which will replace central taxes such as excise duty and service tax and a plethora of states taxes including VAT, is proposed to be rolled out from April 1, 2017.
rajasthan patrika epaper 31/08/2016 : http://epaper.patrika.com