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According to Japanese financial services major Nomura, Goods and Services Tax (GST) benefits are likely to increase over time and in the long run the indirect tax regime with strengthen tax revenues, boost economic growth. The benefits are expected to be substantial, predicts Nomura.
The automotive industry association SMEV have appealed the government to exempt electric vehicles from the Goods and Services Tax (GST) as these vehicles play a vital role in reducing air pollution. Notedly, SMEV is an association that represents Indian manufacturers of electric vehicles and electric vehicle accessories.
GST multi-tier structure has been questioned by senior Congress leader Chidambaram, as he mentioned, The proposed GST structure with higher rates has left a lot to be desired” and there is a room for improvement in the multi-tier tax framework.
In the middle of GST application, Tamil Nadu Packaged Drinking Water Manufacturers Association has applied a plea in favor of exempting themselves from the GST effects as the reason offered was that the water supply basically completes needs of the domestic region.
Finally, GST council stick to the four-tier rate structure of 5,12,18,28 percent. The council in its two days meeting has been striving for these rates for several months and now completed the discussion with these rates along with some modification of center’s proposal. The highest rates for other FMCG products are being stricken at 6, 12, 18 and 26 per cent.
What a great infusion of government and general public has been showcased in this recent time when there is a whirl of Goods and Service tax around the nation. The one tax rate concern is a very old issue, perhaps started in 1974 in the United States, when Arthur Laffer an American economist first jot down the one tax case what is known popularly as ‘laffer curve’.
GST is giving dilemma in every government body by the fact of its roll out and its implementation on various departments of the authorities. In the same world of confusion, the Pune Cantonment Board is in tensed situation as the board has been suffering from loss of revenue and upcoming GST will sour its problem even more.
SAP a leading technological advancement organization and Assocham which is an industry oriented operation structure, both of these giant bodies, has now started a knowledge sharing platform which is advising upon various significant changes which will be implemented into the business structure after the roll out of GST.
Finance Minister Arun Jaitley has been backing up the proposed GST rate structure which was divided into four rate slab in the previous meeting held. The tax rates of 6, 12, 18 and 26 per cent with almost every goods coming into the 18 percent structure.
