In­dia’s cabi­net okays 4 bills for GST im­ple­men­ta­tion

New Straits Times - - Business -

NEW DELHI: In­dia’s cabi­net has ap­proved four bills to im­ple­ment a planned Goods and Ser­vices Tax (GST) bills, said a gov­ern­ment of­fi­cial yes­ter­day, paving the way for Prime Min­is­ter Naren­dra Modi to im­ple­ment the land­mark tax re­form from July.

The four bills were likely to be taken up by the Par­lia­ment this week, and a sep­a­rate state GST bill in state as­sem­blies later, said the of­fi­cial.

The GST Coun­cil, com­pris­ing fed­eral and state fi­nance min­is­ters, has cleared all five draft laws — the Cen­tral GST, In­te­grated GST, state GST, Union ter­ri­tory GST and rules on com­pen­sat­ing states for rev­enue losses.

There would be four tax slabs of five, 12, 18 and 28 per cent, plus a levy on taxes on items like cars, aer­ated drinks and tobacco prod­ucts to com­pen­sate states for any rev­enue losses in the first five years.

The new tax, big­gest tax re­form since In­dia’s in­de­pen­dence in 1947, is ex­pected to boost the rate of eco­nomic growth by about 0.5 per­cent­age points, broaden the rev­enue base and cut com­pli­ance cost for firms. Reuters

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Wire­less car­rier Ax­i­ata Group Bhd is the big­gest share­holder of M1 Ltd with a 28.5 per cent stake.

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