New Delhi: Finance Minister Arun Jaitley assured India Inc on Friday that goods and Services Tax (GST) rates will not be ” significantly different” from current levels, and said consumers will benefit from the country’s biggest tax reform as it will eliminate the cascading impact of various central and state levies.
Jaitley said some ” tough steps ” are required so that India increasingly becomes a tax compliant society.
Promising more reforms, he said the government was in the final stage of scrapping the 25 year old Foreign Investment Promotion Board(FIPB) to ease investment flows. The government will also come up with rules of attracting foreign investment in defence equipment.
Addressing on confederation of Indian industry annual meeting, Jaitley urged companies to pass on the benefit of lower tax burden to consumers.
While parliament has passed all four crucial laws— Central GST, Integrated GST, compensation rule and Union territories GST bills— state have to clear the state GST bill in their respective assemblies for the new tax regime to be implemented from July.
The GST council has finalised a four-slab GST structure of 5%, 12%, 18% and 28% with a provision for an upper cap of 40%. The council will meet in Srinagar on May 18-19 to finalise tax rates on different goods and services after unifying atleast 10 indirect taxes under GST.
“We are now in final stage of fixing tariffs for different commodities. The formula under which it is being done has also being explained and therefore nobody is going to be taken by surprise, it’s not going to be very significantly different ( from present).” Jaitley said.