|Chennai||Rs. 25020.00 (0.81%)|
|Mumbai||Rs. 25890.00 (0.98%)|
|Delhi||Rs. 25200.00 (-0.2%)|
|Kolkata||Rs. 25480.00 (1.03%)|
|Kerala||Rs. 24800.00 (0.61%)|
|Bangalore||Rs. 25000.00 (0.81%)|
|Hyderabad||Rs. 25080.00 (1.09%)|
Dual control on trade may be imminent once the goods and services tax (GST) regime replaces VAT, Central Excise and Central Sales Tax (CST), likely from 2015.
“Dual control is not advisable as it puts traders and businesses to unnecessary hardships. As both the central and the state agencies will vie for their control in GST collection, I see a possibility of having a minimal dual control with the role of central agencies largely confined to big businesses,” Suresh Chanda, commissioner of Commercial Tax department, told Business Standard.
Dual control would mean a businessman will have to file the details of sales transactions with both the central and state,and may also have to take necessary licence from both for the purpose of GST. Small businesses may find it very difficult to deal with two agencies for a single purpose, according to Chanda.
Besides, no central excise is levied on trade up to a turnover of Rs 1.5 crore while those below this are also subjected to the payment of state VAT. However, GST allows the Government of India to levy tax equal to the state rates across the board.
“It is likely that the Government of India will be able to get more tax revenue under GST due to widening of the tax net down to businesses below Rs 1.5 crore. The finance ministry argues that the states will also be gaining more in the form of service tax etc, and not just the Centre,” Chanda said.
Chanda believes the revenue loss, if any, post implementation of GST will not be much as the empowered committee has agreed to give flexibility to the states to levy additional cess on petrol and diesel besides keeping liquor out of the purview of GST.