Finance Minister Arun Jaitley, who is returning on Tuesday from Azerbaijan capital Baku, where he was attending the annual meeting of the Asian Development Bank, told a news channel that there is broad consensus on the measure and he has tried to allay the apprehensions of opposition members that there will be no revenue loss to states on its implementation.
“I have convened several meetings of state finance ministers. I have spoken to most political parties and broadly there is a large consensus,” he said.
“At the end of the day, it benefits the states. It’s going to benefit India’s GDP. It’s going to facilitate a seamless transfer of goods and services across the country. It will increase quantum of tax collection, it will reduce harassment,” he added.
Seen as a key to facilitate industrial growth and improve the business climate in the country, the GST bill needs to be passed by a two-third majority in both houses of parliament and by the legislatures of half of the states in the country to become a law.
By subsuming most indirect taxes levied by the central and state governments such as excise duty, service tax, VAT and sales tax, the Goods and Services Tax proposes to facilitate a common market across the country, leading to economies of scale and reducing inflation through an efficient supply chain. The government is trying to implement the measure before April 2016. (IANS)