Finally, The historical GST Bill is passed successfully in Rajya Sabha. This is on of the biggest economic transform in last few decades.
One India, One Tax. - How will it help?
India is politically single country but economically separated. Center and states have different tax powers. Today, there are two taxes associated with all products (State + Center).Also read: CEA-Led Panel Recommends Standard GST Rate Of 17-18%
Example :
If a person manufactures shirts, he pays excise to center and then we pay VAT when we buy it (state). We also end up paying tax on the tax as well.GST will be a single tax in entire India which will help cut down prices, streamline business and would affect inflation on longer run as well.
"The GSTBill will empower the states, will increase revenue of states as well as Centre. It'll ensure that there is 'no tax on tax'"finance minister Arun Jaitley said on Wednesday in the Lok Sabha.
Also read: India Can Save Upto INR 3.33 Lakh Crores If Logistics Costs Are Lower
The Rajya Sabha on Wednesday passed the Goods and Services Tax (GST) Constitutional Amendment Bill which the Lok Sabha had already approved last year. The exact rate of the tax will only be decided in the weeks or months ahead.
Arun Jaitley's reply in Rajya Sabha on GST Bill: 03.08.2016
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