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  Business   Economy  26 May 2017  GST will remove barriers like octroi, entry tax: Adhia

GST will remove barriers like octroi, entry tax: Adhia

THE ASIAN AGE
Published : May 26, 2017, 3:12 pm IST
Updated : May 26, 2017, 3:12 pm IST

Adhia writes in an opinion piece it was time to reflect on possible benefits of GST to trade and industry.

Revenue Secretary Hasmuk Adhia with Finance Minister Arun Jaitley.
 Revenue Secretary Hasmuk Adhia with Finance Minister Arun Jaitley.

Mumbai: Revenue Secretary Hasmukh Adhia has said that all the works necessary for implementation of the Goods and Services Tax have already been done, according to an opinion piece Adhia has written for The Economic Times.

He writes that prime benefit of the 'One Nation One Tax' regime would be that India will become a single nationwide market. "One product or service will have a single tax rate in any part of the country. The multiplicity of taxes on the same commodity or service will now go," he says.

 

Adhia believes that India's trade and industry outreach initiatives were running at full pace and it was high time that the country reflected on possible benefits of new indirect tax regime "to the trade and industry, to consumers, to the government and to the entire economy."

Under the new GST regime, tax incidence on a product or service may get slashed for most items as cascading effect of various taxes will come to an end. Smooth and continuous credit flow across value chain will also help reduce the tax rates.

"If goods are produced in which services are used, the input tax credit of taxes paid on services will be available and vice versa," Adhia explained the input tax credit in his opinion piece.

 

Tags: gst, goods and services tax, gst council, entry tax, octroi tax, hasmukh adhia, arun jaitley
Location: India, Maharashtra, Mumbai (Bombay)