Tax experts hope Goods and Services Tax will pep up GDP growth by 2%

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Tax experts on Sunday said there will be a uniform and one-nation-one-tax in the form of Goods and Services Tax (GST) proposed from April 1.

The experts guided CAs on GST during a regional tax conference held here jointly by the Nashik and Jalgaon branches of The Institute of Chartered Accountants of India (ICAI).

Bimal Jain, chairman, Indirect Tax Committee of PHD Chamber of Commerce, said, “The present indirect taxes in India have driven business to structure and model their supply chain and systems owning to multiplicity of taxes and costs involved therein. GST will be a big game changing reform for Indian economy by developing a common Indian market and reducing the cascading effect of taxes on the cost of goods and services.”

He added, “GST has broad-based implications, affecting the entire organisation regardless of the size and nature of the business. There will be uniform tax structure across the country based on the one-tax-one-nation formula. Currently, the total taxes on supply of goods in the country are around 27%. But the standard tax rate of GST will be 18%.”

Keeping in mind the federal character of the Constitution in which the power to tax domestic trade is divided between the Central and the state governments, it was felt that the dual GST model will serve the purpose and would take care of the fiscal autonomy of the state’s. Under the dual GST model, there will be two stream of GST running concurrently,” said Jain.

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