Chennai: The ruling AIADMK in Tamil Nadu, which had initially opposed new Goods and Services Tax (GST) regime, today introduced a Bill in the State Assembly.
The Tamil Nadu Goods and Services Tax 2017 bill, which aims at levying and collection of uniform tax across the State, was tabled by Commercial Taxes Minister K.C. Veeramani on the opening day of the Assembly session today.
The GST regime would come into force across the country on July one. Tabling the Bill, Veeramani said the proposed Bill will confer power upon the State government for levying goods and services tax on the supply of goods or services, which take place within the State.
He said the proposed legislation will simplify and harmonise the indirect tax regime in the State.
“It is expected to reduce cost of production and inflation in the economy thereby making the trade and industry more competitive”, the Minister said, adding due to the seamless transfer of input tax credit from one stage to another in the chain of value addition, there was an in-built mechanism in the design of goods and services tax that would incentivize tax compliance by taxpayers.
At present government of Tamil Nadu levies tax on retail sales in the form of value added tax, tax on entry of goods and motor vehicles in the State in the form of entry tax, luxury tax, entertainment tax, purchase tax and advertisement tax.