Thanking the Union Finance Minister for charting the road map for Goods and Services Tax (GST) implementation, the Tamil Nadu Chamber of Commerce and Industry has sought constitution of a high-level committee consisting of representatives of leading chambers of commerce and industry before finalising the revenue neutral rate (RNR).
Senior president of the chamber S. Rethinavelu said that the proposed GST was to subsume Central excise duty, service tax, Central sales tax, value-added tax, tax on lottery, entry tax, entertainment tax, luxury tax and such other direct taxes and would enthuse tax-abiding honest businessmen.
Considered as the unique and stupendous indirect tax reform after the country’s independence under the ‘single country, single market, single tax’ principle, the GST rollout would provide massive impetus to trade and industrial growth.
However, the Finance Minister should take into account the views of trade and industry before finalising the RNR for goods presently subjected to excise duty and for those not subjected to excise duty, particularly, agricultural products and for deciding the list of exempted goods.
Further, it was important to take care that States did not sustain any revenue loss or any undue depletion of their sovereignty for levying taxes. Demands The Finance Minister had conceded many demands and suggestions voiced by the empowered committee of State Finance Ministers on the GST.
He also assured that no State would suffer any loss on account of the GST, when implemented. Hence, by involving trade and industry, the GST would get better clarity when it came into force from next fiscal, he noted.
