Budget 2014: Committed to GST, high level committee to clarify retrospective tax, says FM

The Finance Minister today said that the government was committed to not bringing any new taxes with retrospective effect in order to provide a stable taxation regime and also said that the government would aim to push through the contentious Goods and Services Tax.

“I would like to convey to investors that we will have a stable taxation regime,” he said.

The Finance Minister said that all cases rising out of retrospective tax law that have already been passed will be analysed by a high level committee of CBDT before any further action is taken.

Existing cases of litigation that arose from the previous retrospective tax, like the one involving Vodafone, will be taken to their logical conclusion, he said.

The Finance Minister also said that there was no question of delaying GST any more.

“We have discussed the issue for many years…I have discussed the matter with states individually and collectively,” he said, adding that the government hopes to approve the legislation by this year for the indirect tax that is expected to streamline tax collection.

He assured all states that the centre would be fair in dealing with them.