Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 4-3-2017 Last Replied Date:- 6-3-2017 – What has changed in last few months that GST Council (GSTC) is said to have made up its mind to escalate GST's peak rate from 28% to 40% ? Perhaps nothing except the economic fallout of demonetization, adverse impact on consumption patterns and lower spending, lesser demand and dropping bottom lines. GDP at 7 percent !! Who is bothered except economists and politicians in power who want to make people feel that all right. GST Council is meeting for two days on 4-5 March 2017, ahead of Budget session of Parliament next week, wherein draft laws are excepted to be approved and recommended to Parliament. The Parliament is the legislati
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
nd work for the mandate it has in public and national interest only. If this is allowed, (and cess will continue), no major relief may be there in GST and gradually, GSTC is likely to shift more and more items in 40% slab. If at all 40% tax rate is being thought of, GSTC should be honest enough to enlist the items to which such a rate be subjected to in future. Simple because tax hike in future beyond 28% would require Parliament's nod as reason for this is unwarranted and likely to be misused. This is also going back on earlier promise that rate will not be increased beyond 28%. Even the revised model law stipulates this. In a short span of few weeks, what has changed that the peak rate is being talked about to be enhanced to 40 percen
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
the sake of enabling provision. In all fairness, it should not be increased and if done, should be opposed tooth and nail by all stakeholders including apex chambers, professional bodies like ICAI, ICSI, ICWAI and trade bodies. GSTC can not be allowed to take us for granted. – Reply By Ganeshan Kalyani – The Reply = It is really a big concern for stakeholders. GST Council is consists of state finance ministers as its member and union finance minister as chair person. So when they decide about the issue may tend to think about the revenue their respective state should receive. Chair person may be convinced. Thus there should be an independent body apart from state finance ministers to decide on the rate of tax, tax issues etc. – Reply By As
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =