New Delhi: Welcoming the recommendations put forth by the Arvind Subramanian panel on GST, Ficci on Friday said rollout of the tax reform will add 2 percent to India's growth and usher in efficiency and transparency in the indirect tax regime.
In recommendations aimed at breaking the GST logjam, the panel today suggested dropping additional one per cent tax on inter-state sales over and above the Goods and Services Tax (GST) rate.
"GST is expected to add about 2 percent to our GDP and will lead to long-term benefits not only to the government, industry or traders, but to final consumers as well. We look forward to the implementation of an optimal GST," Ficci Secretary General A Didar Singh said in a statement.
"GST has been a long pending reform measure and its implementation would bring about efficiency and transparency in the indirect tax system enhancing the competitiveness of industry."
The CEA-headed panel, however, did not favour putting the rate of GST, which seeks to replace all indirect taxes including excise, service tax and sales tax, in the Constitutional Amendment Bill.
It has suggested a revenue neutral rate for GST of 15-15.5 percent and a standard rate of 17-18 percent.
The main opposition party Congress, which had blocked the GST Bill in the Rajya Sabha in the last session of Parliament, has been demanding a simple GST and scrapping of the proposed levy of one per cent additional tax. The party has also been demanding that the rate be part of the Constitution Amendment Bill.
The panel, with a mandate to suggest a revenue-neutral rate for GST, has favoured no additional tax on inter-state sales, including one per cent proposed in the GST Bill.
It also suggested inclusion of alcohol and petroleum products in GST, as is being demanded by the Congress.
The government wants the GST Bill to be approved in the current session of Parliament to meet the April 1, 2016, rollout deadline.
