The new goods and services tax (GST) regime is the culmination of a process that began in 1985, with the introduction of the Modvat (Modified Value Added Tax) scheme for a few items by V P Singh, the then finance minister (FM). Prior to that, a scheme of set-off was available in a very restricted way. The Modvat provisions for credit were part of the central excise rules.
In 1994, the capital goods credit scheme was introduced by Manmohan Singh, the then FM. He also started the process of levying service tax, on three services, the same year. Over
In 1994, the capital goods credit scheme was introduced by Manmohan Singh, the then FM. He also started the process of levying service tax, on three services, the same year. Over
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