The government will work to introduce the much awaited (GST) Goods and Service Tax this year, Finance Minister Arun Jaitley said, presenting the budget for 2014-15 fiscal. This can lead to the price decrease, but we are still waiting for the updates on car excise duty. The GST planning to replace a series of existing taxes such as excise duty, service tax and value added tax (VAT). The GST is an indirect tax that will be imposed on almost all goods and services produced in India or imported.
Jaitley said the GST will “streamline tax administration and result in higher tax collection for the centre and the states”. The previous UPA had tried to push through the ambitious GST but failed as several states said they were not being adequately compensated by the central government for the losses arising from its implementation. According to the sources the GST is expected to bring down net taxes on goods and services while increasing the overall tax collection due to improved compliances. Moreover, it will provide a stimulus to the economy and could push economic growth up to 2 percent.
Get the live updates of Union Budget 2014 here
Watch the Live streaming of Union Budget 2014: Finance minister’s Budget Speech will be Live here at 11am