Legislation on Direct Tax Code, GST set for budget session: Pranab Mukherjee

The parliamentary standing committee looking into the draft direct tax code (DTC) bill is expected to submit its report by the winter session of Parliament, and thereafter the government hopes to get the legislation passed during the budget session, finance minister Pranab Mukherjee said today.

DTC Bill, which was introduced in August 2011, is one of the two major steps being undertaken in the area of tax reforms, the other being the goods and services tax (GST), the finance minister said while addressing the National Development Council meeting in New Delhi today.

The goods and service tax (GST), which seeks to amalgamate several taxes levied by the centre and the states at different stages of the value chain, would mitigate cascading and make Indian industry competitive in domestic as well as international markets, he said, adding that it would also improve compliance and make the level of taxation transparent to the end consumers.

The introduction of GST requires a constitutional amendment to enable the centre to levy a tax on the distribution of goods beyond the manufacturing stage and to empower the states to levy a tax on supply of services. The bill to this effect has already been introduced and is currently with the parliamentary standing committee, he said.

He said the draft National Food Security Bill prepared by the Department of Food and Public Distribution, which would ensure food and nutritional security for all Indians has been sent to all states and union territories and other central ministries for their comments and suggestions. It has also been posted on the website of the ministry of consumer affairs. So far, only a few states and UTs have sent their comments, he said. He also requested states to send their views at the earliest to help finalise the bill for introduction in the winter session of Parliament.

The implementation of the Food Security Act will be the joint responsibility of the centre and the states. Both have to work together to procure the required quantity of foodgrains and ensure distribution of the foodgrains to the beneficiaries through an effective delivery system, he said.