Power tariffs will not rise with GST, says Goyal


A plethora of cascading central, state, interstate and local taxes will be replaced by a single, nationwide, value-added tax on goods and services when the GST rolls out.

Manufacturers also alleged that the state government did not pay heed to their demand though "it is keen to set up Misti hub (Sweet hub)", said Samity's Assistant Secretary Jayanta Barat.

He said the broadening of tax base is an important outcome of the new uniform taxation regime and other initiatives on e-payments and digitisation.

For some days now, several service providers - from insurance and banking to telecom and hotels - have been sending emailers to customers warning of a GST-driven increase in prices starting July 1. The tax reform is likely to help the formal job sector get an annual growth rate of 10-13 percent.

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Singh said that the states had a major say in the GST council decisions. Bloggers earning under Rs.20 lakh a year from their blogs do not have to register for GST, said a tax consultant with online tax-filing platform ClearTax.

GSTN, the company providing information technology (IT) backbone for the new tax regime, will offer another opportunity to existing taxpayers to migrate, five days before the rollout of the GST. For example, the service tax on premiums of term/health plans will go up to 18 per cent from 15 per cent. Plane tickets attract a 5 per cent GST rate, but business class tickets are 12 per cent. Staples such as food grains and fresh vegetables are not taxed, while education and health services will continue to be exempted. Although 142 nations around the globe are implementing GST, India is unique because of the vastness of the country and its huge population, Naidu said.

"Those officials who had undergone training on GST are also appointed in every district (of the state) for the benefit of traders", the minister said. "It is proposed to be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff". From the consumer's point of view, the biggest advantage of GST would be in terms of reduction in overall tax burden on goods.