Implement GST as soon as possible: ASSOCHAM

As a next logical step towards GST, the Service Tax and Excise Duty rates should be aligned in Budget proposals for 2010-11.

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has described unveiling of White Paper on Goods and Service Tax (GST) by Finance Minister, a pro-active step in the right direction, in which merger of all indirect taxes on goods and service, levied by centre and states into one is proposed.

In a statement, the ASSOCHAM President, Dr. Swati Piramal said that GST should be executed as soon as possible but industry should be given adequate time to understand procedures of new taxation system for its accounting standards.

Dr. Piramal said that GST would eliminate the cascading impact of taxes on production and distribution cost of goods and services. This will significantly improve the competitiveness of indigenous goods and services, leading to accelerated GDP growth.

As a next logical step towards GST, the Service Tax and Excise Duty rates should be aligned in Budget proposals for 2010-11. Thereafter, Central Excise and Service Taxshould be merged and replaced by Central GST (CENVAT). This would mark the consolidation of central taxes on goods and services. This exercise would be relatively easier and is within the legislative powers of Central government.

Source : http://www.indiainfoline.com/Markets/News/News.aspx?NewsId=13129

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