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TN govt moves GST bill in assembly

Press Trust of India  |  Chennai 

The moved a bill on in the Assembly today, saying the proposed legislation will "simplify and harmonise" in the state the new indirect regime, to be rolled out nationwide from July 1.

The 'Goods and Services Bill, 2017,' was moved in the Assembly by Commercial Taxes Minister K C Veeramani.

In the statement of objects and reasons mentioned in the bill, he said the proposed legislation confers power upon the state to levy on intra-state supply of goods and services.

"The proposed legislation will simplify and harmonise indirect regime in the state. It is expected to reduce cost of production and in the economy, thereby making the trade and industry more competitive," he said.

Veeramani moved the Bill amidst noisy scenes from who tried to raise the issue of alleged horse trading of MLAs ahead of the February 18 vote sought and won by Chief Minister K Palaniswami.

Veeramani said the present system on goods and service was facing 'certain difficulties.'

"There is cascading of taxes as taxes levied by the Central are not available as set off against" state taxes, he said.

Further, the variety of Value Added laws with 'disparate' rates and 'dissimilar practises' divide the country into separate economic spheres, he added.

Also, creation of tariff and non-tariff 'barriers' like octroi, entry and check posts hinder the free flow of trade throughout the country, he said.

"Besides that, the large number of taxes create high compliance cost for the taxpayers in the form of number of returns and payments," he said.

Therefore, in view of these 'difficulties', the various taxes are proposed to be 'subsumed' in single called and a legislation was necessary, Veeramani said.

The bill "inter alia" allows, among others, the state to levy on all intra-state supplies of goods or services or both, except for supply of alcoholic liquor for human consumption, at a rate to be notified, not exceeding 20 per cent as recommended by the Council, he said.

It will also allow the to continue taxing petroleum products like motor spirit, high speed diesel, natural gas and Aviation Turbine Fuel (ATF) till the date on which the Council recommends for levying of on these.

It will also allow to provide powers to officers "for inspection, search, seizure and arrest," the minister said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, June 14 2017. 16:22 IST