New Delhi, March 31, 2017
States are expected to call a special session of their respective Assemblies and ensure the passage of the State GST Bill by May-end.
The Lok Sabha has already cleared four enabling legislations for the roll out of the levy — Centre GST Bill, Union Territory GST Bill, Integrated GST Bill and the compensation law.
Revenue Secretary Hasmukh Adhia assured that tax rates under GST would not see any major fluctuation.
“The fundamental principle is that the present incidence will continue. Nobody needs to worry that their tax rate will go up too much or hope that their tax rate will go down too much. There is no need for anxiety,” he said.
The standard tax rate for services will be 18 per cent under GST, Adhia said. The only exceptions will be those services such as transportation that currently enjoy abatement.
“The abatement will not remain. But the services will be fitted in the tax slab under GST based on the present incidence post abatement,” Adhia said.
Despite muted direct tax mop-up, the Revenue Secretary was confident of meeting the tax collection target for the current fiscal.
“We will be achieving our Revised Estimate. We may collect a bit more in indirect taxes,” he said, adding that the direct tax collection target is also likely to be met.
The Centre has pegged its gross tax revenue target at Rs.17.03 lakh crore in the Revised Estimates of 2016-17, marginally higher than the Budget target of Rs.16.3 lakh crore, due to expectation of higher receipts from central excise duty.
[The Hindu Business Line]