Thursday, 7 May 2015 00:00
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The Lok Sabha on Tuesday passed the Constitution amendment bill to roll out the Goods and Services Tax (GST), a day after it was tabled in the house.
GST is India’s most ambitious indirect tax reform plan, which aims to stitch together a common market by dismantling fiscal barriers between states. It is a single national uniform tax levied across the country on all goods and services.
The indirect tax system in India is currently mired in multi-layered taxes levied by the Centre and state governments at different stages of the supply chain such as excise duty, octroi, Central Sales Tax (CST), Value Added Tax (VAT) and octroi tax, among others.
In GST, all these will be subsumed under a single regime.
Sri Lankan analysts said India’s move could have significant effects on exports to India because NTBs, including entry taxes are a significant deterrent to trans-state shipments.
