GST, Goods and Services TaxKey Points:
- Bihar has lost revenue after implementing prohibition since April 1.
- To move forward Bihar has played an essential role for GST and it will be most beneficial for us as we are a consumer state.
- Bihar hopes that the tax reform would bring more revenue to the state capitals.
- Tax reform will bring services under the tax territory. Revenue of the state will increase after GST bill.
- States must be given powers to collect central GST taxes and through, the GST network it will be credited into the Centre՚s associated funds.
Benefits:
- There will be uniform tax system all over the country and simplicity in the tax system.
- This bill will improve easiness of doing business as it will turn the country into united market place.
- Now, the consumer states will also get benefit and manufacturing state were getting lion՚s share of taxes.
- State will get share of those service taxes and it՚s earlier collected by the central government only.
- This will give valuable resources to the state and also help to us control tax elusion because of the GST network.
Background:
- Support to the Bill will helped Prime Minister Narendra Modi to win the support of opposition parties.
- Narendra Modi has the former chairman of the authorized committee of the states finance ministers on GST.
✍Examrace Team at Aug 22, 2016