New Delhi: Prime Minister Narendra Modi on Monday said that rollout of the new indirect tax regime -- GST from July 1 will be a turning point for the India's economy.
The Prime Minister asserted that the implementation of GST is the culmination of the concerted efforts of all stakeholders, including political parties, trade and industry bodies.
He directed officials that the creation of One Nation; One Market; One Tax would greatly benefit the common man. The Prime Minister also directed that maximum attention be paid to cyber-security in IT systems concerned with GST.
Modi today reviewed the preparedness for the new indirect tax regime -- GST -- which will be rolled out from next month.
The meeting was attended by Finance Minister Arun Jaitley, Revenue Secretary Hasmukh Adhia and senior officers from the Central Board of Excise and Customs (CBEC).
This was the first review by the PM after the GST Council finalised the rates, and the second since May 2.
The GST Council, chaired by Finance Minister Arun Jaitley and comprising his state counterparts, has already finalised tax rates on almost all goods and services. It will meet again on June 11 to review some of the rates and discuss other pending issues.
All goods and services have been put in slabs of 5, 12, 18 and 28 percent, with the exception of gold and precious metals, which will attract 3 percent GST, and rough diamond at 0.25 percent GST.
Items like salt, milk, gur, egg, curd, unpacked foodgrain and paneer, fresh vegetables, unbranded atta, maida, besan, honey, besides education and health services, have all been exempted from GST.
Tea, sugar, coffee beans, edible oil, packed paneer, milk powder, brooms, domestic LPG and kerosene have been put in the 5 percent bracket.
According to the fitment of rates in various tax brackets, 81 percent of the items will fall in/below 18 percent slab. Only 19 percent of the goods will attract GST above 18 percent.
Hair oil, soaps, jams, soups, ice cream, capital goods and computers will attract a 18 percent levy.
Those placed in the 28 percent slab are custard powder, shampoo, perfume, make up items, chewing gum, motorcycle, cement and consumer durables.
The single-biggest taxation reform since independence, the Goods and Services Tax (GST) will subsume 16 different taxes, including excise, service tax and VAT, and make India a single market for seamless movement of goods and services.
GST is estimated to boost GDP by 1-2 percent and bring down inflation by 2 percent over the long term.
