Also this could be the final meeting before the country actually goes for the implementation of the new tax regime.
The International Monetary Fund (IMF) had earlier this year said the GST could help raise India's medium-term GDP to over 8 per cent and create a single national market for enhancing the efficiency of movement of goods and services. At present, we have no clarity on how the present excise exemption will work, post GST.
However, he said, the state can not get the benefit until the legislature pass it. The bill will benefit states like J&K that depends greatly on imports.More news: SIA undertaking review after reporting big drop in full year profit
"There will be no inflationary impact as most of the rates which are at 31 per cent have been brought down to 28 per cent", finance minister Arun Jaitley said. And today to my mind this is the most important meeting because there is lot of public interest in it, like what taxes you have on salt, on cigarettes, on ships, so it affects the general public.
While tax slabs for about 80 per cent of items have already been decided, a decision regarding contentious items like motor vehicles, beedi, coconut oil was slated to be taken up for discussion during the meeting.
As soon as the meeting got under way, Jaitley informed the gathering the demise of Union Environment Minister Anil Dave, the spokesman said. The session observed silence for two minutes in his remembrance. Various taxation officials, Finance Ministers and Finance Secretaries of various states and union territories are attending the meeting. "We will bring the GST bill during the next 30 days in the state Legislature", Dr Drabu said, adding that once the bill is passed it will be implemented. "It will be very beneficial for state of Jammu and Kashmir and we estimate that our tax revenue will increase by Rs 1,500 crore to Rs 2,000 crore", Drabu told reporters before the two-day GST Council meeting began here.