GST BY CA SUDHIR HALAKHANDI WHY CENTRE IS SO EAGER ON GST State VAT was imposed throughout India in 2006 and at that time Centre and State were on the same side of the table under the leadership of Empowered Committee of State Finance Ministers. In terms of state revenue VAT was considered as Highly Successful. GST is the next step and centre is very keen on it instead of states . Why? The reason is very clear but not widely discussed. States are not clear about revenue generation from GST but see there is one point which is sure that centre will certainly get a higher revenue from the GST. See at present the central indirect tax is collected in the form of Central excise and it is chargeable on manufacturing stage but in GST it will be replaced by CGST which will chargeable up to last selling stage. That will be a biggest boost to central revenue. Further at present the threshold for central excise is Rs.150 Lakhs which will be reduced to Rs.10 Lakhs under GST. These two points are the main reasons why centre is so keen on GST .
Posted on: Sat, 17 Jan 2015 04:38:19 +0000
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