Goods and service tax is approaching with queries solved in its pack, while it may create some upheaval upon implementation, but it is quite essential to create one. In the last year of discussion among the automobile association with the ministry, Society of Indian Automobile Manufacturers (SIAM) was there to suggest that the road tax should be included in the goods and service tax framework and it must be the part of it. Najib Shah, former Chairman, Central Board of Excise and Customs (CBEC) cleared out that the road tax will not be included in the GST ambit.
At the meeting of managing committee members of the PHD Chamber of Commerce and Industry the minister confirmed this point. He also mentioned that GSTN (Goods and Services Tax Network) systems will go under trials for efficient and error free tax collection. Worthwhile, the goods and service tax rate has also been set for all the passenger vehicles at 28 percent in the wake of garnering more revenue for the automobile industry up gradation.
And in the opposite ratio, the government has also decided to offer subsidies and incentives on the smaller car segments along with fuel efficient cars making out the environment propaganda into the consideration. Goods and service tax is the biggest taxation reform in the Indian history and has the capability to take the economy to the new heights. The new tax regime will take all the indirect taxes currently prevailing in the country.