On the first day of a two-day meeting of the GST Council, headed by Union Finance Minister Arun Jaitley, it has been decided that commonly used products like hair oil, soaps and toothpaste will be charged with a single national sales tax or GST of 18 per cent.
Jaitley had earlier this month expressed confidence of the GST Council arriving at tax rates in the May 18-19 meeting. "The GST law will boost the country's GDP growth by 2 per cent".
"This GST council meet in Srinagar is an attempt to erode financial autonomy of the J&K State", said Dar. Saudi Arabia plans to do it in 2018.
"The GST will bring about comprehensive reform of the indirect tax regime of the country".
A day before introduction of the State Goods and Service Tax Bill in the Odisha Assembly, Chief Minister Naveen Patnaik on Wednesday said GST was a major financial reform which would transform the country into one single market.More news: Rhythmone (LON:RTHM) Receives Buy Rating From Numis Securities Analysts
Considering the massive impact of GST the operators have already initiated the registration process involving migration to the GST regime, the COAI said.
These items at present attract 22-24 per cent tax incidence through a combination of central and state government levies.
Dar said the business community and the people would fight tooth and nail to oppose GST implementation in the State.
Currently, there are 17 items in the negative list of services on which service tax is not levied. "By implementing the proposed GST we can also create a better environment for business". "If the revenue collection, post GST implementation would not be 14 per cent more than the previous year, the Centre would compensate the remaining amount to the state from GST compensation fund", said finance secretary T K Pandey.