The Rajya Sabha on Wednesday passed the Goods and Services Tax (GST) Constitutional Amendment Bill. The legislation was approved by the House with 203 votes in favour and none against. What it means for shipping companies? We have asked few representatives of the industry. Mr. Daniel Chopra, Executive Chairman of Elektrans Group, ELEKTRANS Group says, “ GST will be a game changer for the Indian economy and for all Indian corporates across the industries. It will step up the GDP growth rate by at least 2 percent. It is a vital move towards 'ease of doing business' by making not only the rate of taxation lower but also uniform across the states in India. We are in logistics and shipping business which are secondary service industries and our fate and rate of growth are totally dependent on the state of economic affairs in the country. Thus, anything which is good for the economy is music to our ears. We congratulate the present Government for this historic achievement”.
About GST Bill
- The passage of the key constitutional amendment will resolve crucial issues needed to transform India's $2 trillion economy and 1.3 billion consumers into a single market for the first time.
- GST will replace all indirect taxes currently levied on goods and services like VAT, excise, octroi, luxury tax etc.
- Bill seeks to amend the Constitution.
- The government has made several changes to the bill after consultations with opposition parties. It has scrapped a proposal to allow manufacturing states to levy a 1 per cent tax on goods in inter-state trade.
- It has instead specified compensation for five years for the states which will lose revenue because of GST, which earns states revenue from consumption. It has also called for a standing mechanism to settle disputes between the Centre and states.
- GST will allow seamless flow of goods and services between states, which currently have disparate taxes, making India one marketplace. It is expected to improve ease of doing business.
- India is already the world's fastest growing large economy, expanding by 7.9 percent year-on-year in the March quarter. Economists at HSBC forecast a boost of 0.8 percentage points from GST within three to five years.
- Most chief ministers, including those of the Left and the Congress, now back GST. J Jayalalithaa of the AIADMK in Tamil Nadu still opposes it.
Source: TST Newsdesk/ A part of story has been reproduced from The Times of India