Draft GST Bill to be floated soon
The government would soon roll out a final draft of the goods and services tax (GST) bill and drastically prune central exemptions, a senior finance ministry official said on Thursday.
“The government will roll out the final GST draft paper in the public domain very soon,” said Rashmi Verma, special secretary in the department of revenue, at a conference organised by the PHD Chamber of Commerce.
Verma added the government would drastically prune the list of exemptions, now being enjoyed by business.
The Centre’s excise duty exemption list of around 300 items will be reduced to 90 items, in line with exemptions allowed by states from value-added tax.
States exempt unprocessed goods and those consumed by the poor like fruit, vegetables, salt, grain and coarse fabric.
The list of services exempt from levy will be reduced to include only essential services like health and education.
Reduction in exemptions would result in a seamless flow of GST and substantially arrest its cascading effect, Verma said.
Najib Shah, chairman, Central Board of Excise and Customs (CBEC), also said tax exemptions extended to business for expansion and diversification would have to go with the GST legislation becoming a reality.
Source:: Business-standard.com – Economy