The AIADMK government, which initially opposed Centre's proposal to introduce new Goods and Services Tax (GST), on Wednesday moved a bill called Tamil Nadu Goods and Services Tax 2017 to make a provision for levy and collection of uniform tax across the State.
While tabling the bill, the Minister for Commercial Taxes K C Veeramani said the proposed legislation 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", he said adding due to the seamless transfer of input tax credit from one stage to another in the chain of value addition, there is an in-built mechanism in the design of goods and services tax that would incentivise 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.
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