The decision was taken at today's GST Council meeting, where tax slabs were discussed. "The GST law will boost the country's GDP growth by 2 per cent".
Separately, the Goods and Services Tax Network, the company tasked with running the IT infrastructure for GST, has already migrated taxpayer information from State and central tax authorities to its database. China implemented GST in 1994 while Russian Federation did it in 1991.
"GST will bring about comprehensive reform of the indirect tax regime in the country and a major financial reform to make India a single market", Patnaik said.
Ahead of the two-day special session of the state Assembly starting Thursday to pass the state Goods and Services Tax (GST) legislation, MLAs on Wednesday attended a three-hour workshop here to know the new tax regime the country would enter from July 1. Coal would attract a GST of 5 per cent, as compared to the existing tax rate of 11.69 per cent. Expressing similar views, Emami CEO (Finance, Strategy and Business Development) said: "It appears that the rate will benefit us and industry but we need to understand GST (rates) in entirety to comment on the subject".
The tax rates will be decided in a fashion to keep their impact on inflation as well as revenues to the government near neutral. "If the revenue collection, post GST implementation would not be 14 per cent more than the previous year, the Centre would compensate the remaining amount to the state from GST compensation fund", said finance secretary T K Pandey.
Currently, there are 17 items in the negative list of services on which service tax is not levied.
Consumers stand to gain from the GST rates announced for daily consumption items which will also help keeping a check on prices, Consumer Affairs Minister Ram Vilas Paswan said on Friday.