4 August 2016
GST bill, The Goods & Services Tax is now a point of discussion across the country. It was first recommended by Kelhar Task Force back in 2004 and now finally reached the Indian parliament to pass out as a bill. The main motive of the bill is one country & one tax and to incorporate all indirect taxes at the Centre and the state level, Reduce/Eliminate tax evasion and corruption and reduce the cascading effect of taxes on taxes and to increase productivity and transparency; increase tax-GDP ratio. With GST, there will be a price stability across the country.
But, the other side of the coin is States will have to take their toll. An incredible amount of 4700 crore Rupees is the loss estimated by the government of Andhra Pradesh. AP finance minister, Yanama Ramakrishnudu on Thursday told that AP would lose badly with GST but TDP has still supported the bill by keeping the larger interests of the county. Ramakrishnudu also told that AP will lose 23,500 crores in 5 years due to GST and this would be a very bad impact in the financial situation of AP as the state is already neck deep financial problems due to the unscientific bifurcation of the state. He added that it is the center’s responsibility to fill this gap.