Madhya Pradesh to Gain Greater Benefits through GST


BENGALURU: The GST (Goods and service tax) also known as 122nd Amendment bill has proposed a national value added tax in the country. The substantiation of tax has greater benefits to Madhya Pradesh explains, state finance minister Jayant Malaiya.

According to Times of India- Business, the finance minister also proclaims that the implementation of GST can further help in recovering the losses incurred due to e-commerce. “Taxes of state and Centre will be subsumed in GST and a single tax system will make it easier for business community and even consumers to a large extent," said Malaiya.

Looking into the tax in a broader perspective, the taxation deployed earlier in the state is origin-based where the collection of tax is through locating the supplier of goods. However, the GST tax is destination-based; collecting the tax where the consumer of the product is located.

In contrast, the state government at the earlier stage refused to the GST bill and later the government stated that the amendment bill might have some major benefits. In addition, a ‘GSM Model Law’ and the Madhya Pradesh Tax law bar organized a joint collaboration of Commercial Tax Practitioners Association (CTPA) seminar to look after the reform. The seminar witnessed lawyers, tax consultants and officials of the state commercial tax department and central excise. Talking about the seminar, Manoj Shrivastava, the principal secretary of commercial tax department, said that the aim is to make Goods and tax simple and easy to the tax buyers and government collectively should focus on re-engineering and computerizing the amendment.

Sumitra Mahajan, the Lok Sabka Speaker also showed interest about the one tax system and stated that the tax system will benefit in the development of the entire nation and all states collectively.

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