Indian Market & Trends

Gov’t to not hike service tax if GST is delayed

DELHI: The Government is not thinking of hiking service tax if Goods and Services Tax (GST) roll out is delayed said Minister of State for Finance Santosh Kumar Gangwar in a written reply in the Rajya Sabha. He added that the Government is taking steps to expedite the GST and to incorporate the concerns of the States on board.

The minister informed that a Goods and Services Tax Council (GST Council) was constituted on September 9, 2016 under Article 279A of the Constitution. It consists of the Union Finance Minister, the Union Minister of State in charge of Revenue or Finance and the Minister in charge of Finance or Taxation or any other Minister nominated by each State Government.

The Council has been deliberating on various issues and has held nine meetings so far. It has made recommendations with respect to thresholds, tax rates, GST Rules, treatment of existing tax incentives, Draft GST Compensation Law and Model GST Law for implementation of GST, said Gangwar.

He added that all decisions taken by the Council have been based on consensus. The Government is making concerted efforts in the form of IT readiness, rigorous consultations, workshops and training sessions for the industry and traders, and all other stake holders involved.

Musafir Namah Bureau

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