GST will Lead to a Corruption-free Tax Administration
ADDRESSING a National Conference organised by ASSOCHAM, CBEC Chairman Dutt Mazumder said,
++ Introducing GST will lead to a corruption-free tax administration and more tax revenues due to efficient collection and increased compliance.
++ April 2012 deadline for implementation of the long-awaited GST could be moved to June or July 2012 as the central and state governments continue trying to resolve their differences.
++ The GST will be an indirect tax imposed by all states and the central government and replace existing levies such as central sales tax, state sales tax, entertainment tax, lottery tax, electricity duty, stamp duty and value added tax. Exports and direct taxes such as income tax, corporate tax and capital gains tax will not be affected. ??
++ The tax will be collected on goods and services at each stage of sale or purchase in the supply chain and there will be a tax credit mechanism set in place. The end consumer – as the last person in the supply chain – will bear the final tax.
++ Some state governments have been concerned about a loss in their revenue and worry that the tax reform will give too much power to the central government.
++ Tax rates under the GST regime are likely to be between 16 per cent and 20 per cent.
++ A robust information technology infrastructure called GST Net is being put in place for implementation of the GST.