India launches new economic era with sales tax reform

India launches new economic era with sales tax reform

At the stroke of midnight, Goods and Services Tax (GST) was officially launched at the Parliament's historic Central Hall, by President Pranab Mukherjee and Prime Minister Narendra Modi.

The Goods and Services Tax (GST) replaces more than a dozen federal and state levies and unifying a $2 trillion economy and 1.3 billion people into one of the world's biggest common markets. With GST implementation, all the states are slated to gain immensely as they shall now get equal opportunities of development.

The state BJP leadership feels that such workshops will also be utilised to counter West Bengal chief minister Mamata Banerjee's charge regarding GST. I wonder what he would have said had he seen the multiple taxes that were applied here, the PM said on a lighter note. Both Prime Minister Narendra Modi and President Pranab Mukherjee congratulated all political parties including the previous governments.

Businesses are nervous about GST, which sets out four different rates of between five and 28 per cent instead of the one originally envisioned.

One of India's most ambitious economic reform plans in 70 years will ultimately boost tax receipts and provide simplicity for businesses, but the true impact may not be felt for at least a decade due to implementation challenges, experts said. However, it said businesses have been asking for more time to implement changes as they are anxious of being not ready for a switch to the new system.

Mukherjee also said the new era in indirect taxation was the result of a broad consensus arrived at between the Centre and the states. Many people think not paying tax is their fundamental right.

However, the Reserve Bank of India and the Finance Ministry seem to have studied the GST or some form of Value Added Tax (VAT) in few more countries while GST Council was busy to make the new tax regime a reality. Here too inflation rose after switching to new tax regime.

Government and business leaders attended a midnight ceremony to launch the tax at the Indian parliament's Central Hall. However, numerous services such as mobile phone services, healthcare services as well as transportation charges are expected to attract a tax rate of 18%, which is 3% more than its current 15% tax rate. "We feel the wait is worth it", said senior minister Naeem Akhtar. "You are using the roads and other amenities of the government. country and therefore this government does not believe in allowing not paying taxes", Jaitley told an event hosted by India TV, a day after the GST roll out.

"Although it is still far from flawless, we realise how much better it is than the myriad taxes we've been subjected to over the last several decades", said Pratik Jain, Partner and Leader Indirect Tax, PwC India.

However, cheese is also now common in an Indian household, but it will still be charged at the rate of 18%, which will certainly increase in price under GST.



Related Posts

Why AD's identity reveal was the ideal finish to Pretty Little Liars
In addition to other acting work, they've been able to launch and endorse product lines, begin music careers and write books. She could be in a cell totally alone in jail but she's with her mom in a pretty dollhouse. "They're ripped and highlighted".

Warriors speak their political beliefs; National Basketball Association is just fine with that
According to reports , this year's NBA Finals averaged 20.4 million viewers for each of the five of the supposedly seven games. The 2008 Celtics , which traded for Ray Allen and Kevin Garnett to pair with Paul Pierce , were the first modern example.

What To Expect From The White House Summit With South Korea's Leader
Our thoughts and prayers are with Otto's family and friends, and all who loved him. Moon's program of fostering dialogue and exchanges with North Korea.

Warriors to Do 'Whatever it Takes' to Re-Sign Stephen Curry
It's not Curry, the team's leader who had been apolitical publicly. "Steph and Klay spent three years in college", Silver said. "This is a moment we all need to enjoy together". "This whole day, this whole atmosphere, is unbelievable".

Remember a world without iPhones? The revolutionary device officially turns 10
Whether the dummy is an accurate representation of the device Apple is rumored to bring to market later this year remains unclear. Starting with the basics, modern smartphones like the iPhone 7 are staggeringly powerful when compared to the first iPhone .

Four Sit Atop a Crowded Leaderboard at US Open
He said that his 16 years of experience is what allowed him to keep the wheels from falling off on the par-5 14th hole. Stricker improved by a stroke even though Erin Hills showed a few more teeth than it had in Thursday's opening round.

Three ways Trump put China on notice over North Korea this week
Since China is North Korea's largest trading partner, Trump has tried to put pressure on Beijing to act. It insists on eventual reunification, through force if necessary.

Roby Highlights Kate's Law, Sanctuary Cities Crackdown
The department's programs depend on trust and positive rapport between police officers and the communities they serve. The Senate is to consider two bills related to immigration and policy towards sanctuary cities June 29.

Majority Prefer ObamaCare to Struggling Senate GOP Bill
Average age: That would be 61.6, meaning almost half of Senate Republicans are approaching or have already reached Medicare age. The delay was announced with at least five Republicans indicating they were against bringing the bill to the floor this week.

Manny Pacquiao vs Jeff Horn odds: How Pacman will win?
Pacquiao is a giant favorite and this is probably why the bout will be taking place on free television instead of pay per view. Thanks to his prohibitive duties in the senate, Pacquiao hasn't been able to devote as much time to training.

© 2015 Chester Weekly. All Rights reserved.