GST Launch On June 30 With Special Midnight Session In Parliament
NEW DELHI: Finance Minister Arun Jaitley said that India’s largest tax reform since independence will launch the national tax on goods and services or GST at midnight on June 30
Mr. Jaitley said that President Pranab Mukherjee, Prime Minister Narendra Modi and two of his predecessors, Dr. Manmohan Singh SA Deve Gowda, will take place in the central hall of parliament for launch.
PM Modi speak at the special meeting of parliamentarians. All major ministers will be invited to the inauguration, said Jaitley, who has repeatedly stated that the launch of the GST would not be delayed, as requested by some states such as West Bengal.
“When it comes to reforms, it never blinks. If it blinked, it has derailed,” the finance minister said today.
The GST, India’s most ambitious fiscal reform, replaces strong tariffs Mosaic creates a single economic zone with common indirect taxes – something that the European Union or the United States can not presume.
Firms will be able to submit final delays over the first two months to enable them to adapt to a new online submission system. The strict GST deposit schedule will apply from September.
The government said the GST could add two percentage points to economic growth.
There will be four tax planks – 5, 12, 18 and 28 percent.
There have been concerns about the preparation of the GST system, the IT system that marks a technological leap for India: it is controlled through an IT backend that can process up to 5 billion invoices per month. The tax reform also poses a major challenge for collectors who must be trained and companies are aware of a levy that, according to experts, will force them to review business processes from front to back.
More than 6.5 million companies have already registered for GST, M. Jaitley said earlier this week, noting that more than four-fifths of those already registered are to pay old Indian trade taxes.
With business owners who use their personal tax numbers to comply with the GST, the government expects the Dodgers to have income tax on duty. Only about 3 percent of people in India pay income taxes.
The GST was proposed by the previous government led by Dr. Manmohan Singh’s Congress, but was blocked by political stalemate based on the proposal, including how tax revenue is collected and distributed between states and the center.