Mumbai: Revenue Secretary Hasmukh Adhia has said that all the works necessary for implementation of the Goods and Services Tax have already been done, according to an opinion piece Adhia has written for The Economic Times.
He writes that prime benefit of the 'One Nation One Tax' regime would be that India will become a single nationwide market. "One product or service will have a single tax rate in any part of the country. The multiplicity of taxes on the same commodity or service will now go," he says.
Adhia believes that India's trade and industry outreach initiatives were running at full pace and it was high time that the country reflected on possible benefits of new indirect tax regime "to the trade and industry, to consumers, to the government and to the entire economy."
Under the new GST regime, tax incidence on a product or service may get slashed for most items as cascading effect of various taxes will come to an end. Smooth and continuous credit flow across value chain will also help reduce the tax rates.
"If goods are produced in which services are used, the input tax credit of taxes paid on services will be available and vice versa," Adhia explained the input tax credit in his opinion piece.