India to push for GST implementation this year
Today’s Indian budget has included a provision for the implementation of Indian Goods & Services Tax regime this year.
2014/15 Indian GST
Indian GST has been promised for over 10 years as a way to streamline the existing inefficient Indian VAT regime. Aside from being highly complex and time consuming, VAT creates many instances of double taxation across the Indian states.
Following the recent BJP victory at the national elections, as expected, the reform-minded government is looking for the process to be kick started, and agreement to be reached between Central and the States. The Central Bank of India forecasts a fully functional GST system could deliver up to 1.5% increase in GDP. This will be especially welcome as India struggles to keep up with China’s much higher growth rates.
Thursday’s budget announced a plan to aim for implementation in 2014/15.
VAT Budget measures
Other measures announced in the budget included:
- Cotton transportation is to be exempted from Service Tax
- Excise duties on bauxite and coke were raised
- Customs duties on certain oils and steel were reintroduced