India may rake in $15 Billion from GST

By SiliconIndia   |   Tuesday, 30 June 2009, 09:37 Hrs   |    1 Comments
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India may rake in $15 Billion from GST
Bangalore: Increase in exports, more employment and the overall growth of the economy are some of the benefits that India could get if it implements the goods and service tax (GST). According to the head of a government panel, India can gain to the tune of $15 billion per year if GST is implemented. "The new tax system, which will replace all major central and state taxes, is expected to lower tax rates by broadening the tax base and minimizing exemptions," said Vijay Kelkar, Chairman of the 13th Finance Commision.

According to DNA, during his budget speech, Finance Minister, Pranab Mukherjee is expected lay the roadmap for the launch of the new tax reform that is expected to be implemented throughout the country from April next year.

According to Kelkar, implementation of GST had raised Canada's GDP by 1.4 percent and would help India redistribute the tax burden equitably between manufacturing and services. The panel, which has been set up to determine the devolution of central taxes to states for five years, is expected to submit its report soon.

Referring to opposition to GST by some state governments, Kelkar said the panel could provide a compensation package to states and help speed up the implementation of a 'flawless' GST. He said the Centre is mulling on setting up a fund to ensure states are reimbursed for losses following implementation of the unified GST.

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