The Telangana legislative assembly and council on Tuesday unanimously ratified the Constitution Amendment Bill on Goods and Services Tax (GST).With the assembly adopting the Bill, Telangana became the tenth state to ratify the legislation facilitating the Centre to roll out the new unified indirect tax in the country by April next.
Chief minister K Chandrasekhar Rao introduced the Bill in the assembly following which it was passed unanimously after a brief debate.
“The GST is in line with the global trend with over 150 countries implementing similar provisions. It is a significant step towards economic reform which will benefit both the Centre and states.The unified taxation will lead to growth,“ KCR said. He welcomed the Bill saying that the Centre has decided to compensate the states for first five years in case they suffer revenue loss due to GST.
“Going by the experience of the Centre that is yet to compensate for the loss suffered by the states when the value added tax (VAT) was introduced, some states were concerned about the revenue loss that may be caused by the new tax regime. Especially , manufacturing states were worried about losing revenue to consuming states. However, it has been mentioned in the GST Bill itself that the Centre would compensate for the revenue losses suffered by the states within five years. This is a good step, and the states need not be worried,“ he said.
The chief minister added that the states had to wait for the GST Council to decide on tax slabs and rates to get a clear picture about the quantum of initial revenue loss.The CM, however, said that the states stand to gain from GST since they would get 50% share in service tax collection which is at present being levied by the Centre. As far as Telangana is concerned, KCR said the state with 35% growth rate in the service sector would benefit from the GST.
Deputy chief minister Kadiyam Srihari introduced the Bill in the legislative council. Congress members wanted a debate on farmers' issue before taking up the GST Bill, but the government did not agree prompting the opposition party staging the walkout.
Chief minister K Chandrasekhar Rao introduced the Bill in the assembly following which it was passed unanimously after a brief debate.
“The GST is in line with the global trend with over 150 countries implementing similar provisions. It is a significant step towards economic reform which will benefit both the Centre and states.The unified taxation will lead to growth,“ KCR said. He welcomed the Bill saying that the Centre has decided to compensate the states for first five years in case they suffer revenue loss due to GST.
“Going by the experience of the Centre that is yet to compensate for the loss suffered by the states when the value added tax (VAT) was introduced, some states were concerned about the revenue loss that may be caused by the new tax regime. Especially , manufacturing states were worried about losing revenue to consuming states. However, it has been mentioned in the GST Bill itself that the Centre would compensate for the revenue losses suffered by the states within five years. This is a good step, and the states need not be worried,“ he said.
The chief minister added that the states had to wait for the GST Council to decide on tax slabs and rates to get a clear picture about the quantum of initial revenue loss.The CM, however, said that the states stand to gain from GST since they would get 50% share in service tax collection which is at present being levied by the Centre. As far as Telangana is concerned, KCR said the state with 35% growth rate in the service sector would benefit from the GST.
Deputy chief minister Kadiyam Srihari introduced the Bill in the legislative council. Congress members wanted a debate on farmers' issue before taking up the GST Bill, but the government did not agree prompting the opposition party staging the walkout.
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