According to the media sources, today Finance Minister Arun Jaitley has promised that not to spring any surprises in fixing the taxation rates under the execution of new GST law, and also said that they will not be “significantly different” from the current levels. He, however, said companies should pass on to consumers the benefit of reduction in taxes under GST which will eliminate the current compounding effect of different central and state levies.
Speaking at CII’s Annual Meeting, Jaitley said “rules and regulations governing GST have all been framed. We are now in the final stages of fixing tariffs for different commodities.”
Mr Jaitley and other representative members of all the states will be scheduled to meet in Srinagar on 18th and 19th May for finalizing the taxation rates on the several goods and services after collaborating at least 10 indirect taxes into the Goods and Services Tax (GST).
The GST Council, headed by Mr. Jaitley and comprising representatives of all the states, is scheduled to meet in Srinagar on May 18-19 to finalize tax rates on different goods and services after unifying at least 10 indirect taxes into the Goods and Services Tax (GST).
The formula under which it is being done has also been explained and therefore nobody is going to be taken by surprise, it’s not going to be very significantly different (from the present),” he said.
Taxation Rates has settled down into four categories, 5, 12, 18 and 28 percent after centralizing levies on service tax, VAT and central excise.
Fitment will be done by adding the total incidence of current taxation (central plus state levies) and then putting the good or service in the tax bracket closest to it. Mr Jaitley said the GST Council has so far had 13 meetings and has never had to resort to voting to decide on any issue. “And therefore all states representing different political complexions, have all agreed (on GST structure),”
Arun Jaitley stated that “Profit is not a bad word… but unfair enrichment is. And therefore the benefit of reduction in taxation is a benefit that consumers are entitled to. And that’s not a principle that can be seriously contested.”
GST laws were approved by the parliament have integrated by an anti-profiteering provision to assure that reduction of tax incidence is passed on to the consumers.
