Fourteen state legislatures will approve their respective SGST laws by mid-May
Fourteen state legislatures will approve their respective State Goods and Services Tax (SGST) laws by mid-May, according to Revenue Secretary.
He said all states were expected to pass their SGST laws by May-end to ensure that the GST regime was rolled out by July.
Bihar and Telangana had already passed the SGST laws while Rajasthan was likely to approve the bill.
Mr. Adhia said the new regime would not have any inflationary impact on the economy since the country would be shifting away from the multiple-level taxes that had a cascading effect. The GST regime would also aid in easing inflation.
Allaying fears that consumers would have to pay more for goods and services under the GST regime due to an increase in tax rates, Mr. Adhia said the prices of most items would decrease while those of services might stay at the same level.
Also, though a majority of the services would see service tax rising to 18% under the GST regime from the current 15%, most services would get the benefit of input tax credit on purchases and, therefore, the overall tax incidence wouldstay the same.
All foodgrains and absolute essential items for people were likely to be exempted from GST. Therefore, GST would not have an inflationary impact.
The GST Council’s next meeting is scheduled for May 18-19 and is expected to discuss fitment of commodities in the four-tier tax structure under GST.
Under GST, every registered person would be assigned a compliance rating on the basis of the record of compliance in respect of specified parameters. The ratings would be made public.
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