iGST will boost ‘Make in India’: Adhia
NEW DELHI: With Goods and Services Tax (GST) is all set to be implemented from July 1, 2017, Revenue Secretary in the Finance Ministry Hasmukh Adhia termed iGST, one of the components of the proposed indirect tax reform, as a booster for Make in India initiative since it would provide a level playing field to both domestic as well as global manufacturer.
“The tax burden on domestic products will be equivalent to equivalent to imported goods under new regime. The government will not earn any revenue from Integrated Goods and Services Tax (IGST),” Mr Adhia said while addressing the mediapersons at GST Conclave..
“It is wrong to say that GST will have inflationary impact as we are moving from a multiple tax regime to a single tax whereas the other countries of the world moved from single point tax to multiple tax regime which had a cascading impact,” Adhia said ahead of government’s plan to roll out the indirect tax regime from July one.
He said there will be no separate taxes. It will be only one GST on goods and services. The GST has unified Centre and state taxes. The inter state movement of goods will attract Integrated GST but the input credit for that will be given to the trader.
Adhia said there will be IGST on imported goods too and it will help local product competitiveness. Besides, the proposed GST will boost government’s Make in India programme.
“All imported goods will be charged IGST which is equivalent to Central GST and State GST. This will bring equality with taxation on local products,” the secretary said. He, however, said that Customs duty has been kept out of GST and it will remain as earlier