Universal Appeal to Support GST
This petition had 58,761 supporters
This is a historic opportunity for India to implement a game-changing tax reform. GST is India's most significant tax transformation in decades. GST, when implemented, is expected to usher in a harmonised national market of goods and services and lead to a simplified, assessee-friendly tax administration system, which would be equally beneficial for customers and producers. Once implemented, it will subsume most of the country's central and state level duties and taxes, thus making the country a national market.
GST has the potential to improve tax compliance, lower the overall tax rate in the country, dramatically improve ease of doing business and boost country's GDP growth by 1 to 2 percent. There is no doubt, domestically, it will help improve governance, strengthen tax institutions, and impart buoyancy to the tax base even while lowering the cost of goods.
GST has been extensively debated and discussed for almost a decade and we have arrived at a reasonable model. The report submitted by the Chief Economic Adviser on Revenue Neutral Rate (RNR) and structure of GST has brought clarity. The Committee has recommended a reasonable RNR of 15-15.5 % and acceptable Standard Rate of 17-18 % and lower Rate of 12% for essential goods. CII has strongly welcomed the Report and with these Rates the consumer will benefit as it will lead to overall reduction of the tax burden on most of the goods.
In the light of recent developments, the ongoing delay in implementation of GST is a matter of great concern. If the Constitutional Amendment Bill is not passed in the current Winter Session, it will be a big disappointment for the country and a road block in development.
It seems difficult to have an ideal GST at this precise moment, as the model has to be acceptable to all States. Consequently some of the sectors have been proposed to be kept out in the beginning and brought in later under GST. Everyone would have liked a perfect GST, but we cannot allow best to be the enemy of the good. At this point of time it is imperative to move forward with GST. It is the need of the hour to pass the Bill and implement GST without any further delay.
GST is bound to be a game-changing indirect tax reform which will help in improving governance and facilitate ‘Make in India by Making One India’.
CII appeals to all stakeholders to support the Constitutional Amendment Bill, so that it can see an early passage in Parliament.
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