Goods and Service Tax Bill introduced in the Rajya Sabha today by the Union Finance Minister Mr. Arun Jaitley is going to lead to growth in Indian business which will boost the country’s GDP and shall bring in the much needed simplification, rationalization and borderless trade in taxation system and make trade and industry more competitive says Mr. Vijay Kalantri, President, All India Association of Industries (AIAI).
AIAI is of the opinion that the tax ceiling should not be above 18%. To begin with it should be between 15% to 16%. If we initiate the 28% tax ceiling, India will be known as one of the highest taxation country a label that will be a huge deterrent for the FDI in our country. This also will result in unfair practices in view of the high tax rates. This will enhance the previous practices of fudging and it will prove to be a revenue loss to the exchequer.
Besides in developing countries GST is not applicable on educational purpose like cess on schools, colleges and institutions, also on garments for children below 10 years. The Government should consider these pertinent issues added Mr. Kalantri.