GST Updates (22 Oct 2016)

GSTN ready to migrate existing 80 lakh assessees from Nov. 8, 2016

October 22, 2016
GSTN ready to migrate existing 80 lakh assessees from Nov. 8, 2016
Goods and Service Tax Network (GSTN) is ready to enroll 80 lakh existing assessees of Excise, VAT, and Service Tax on its platform.

We will enable the GSTN platform for migration of existing assessee with effect from November 8, 2016, said Prakash Kumar, Chief Executive Officer, GSTN. This move will help assessees to do their business without any hassle from April 1 next year on implementation of GST.

He further pointed that the assessee’s details would come onto the GSTN Platform, but they would not be able to use other features from November 8, itself.

GST roll out stuck again

October 22, 2016
GST roll out stuck again

After raising high expectations, Finance Minister Arun Jaitley-headed GST Council has hit a speed breaker which is rather annoying. This does not augur well for the economy that needs as big bang a reform as the Goods and Services Tax, sooner than later. Given the diversity of economic development, divergence of opinion among states is not surprising. To narrow down such differences itself is the job of the GST Council. The first two meetings of the Council appeared to be quite promising, raising hopes about the roll out of the new tax regime from April 2017. Even on the opening day of the third meeting of the GST Council on October 18, it looked as if the agreement on the all-important issue of the rates would be stitched and announced the next day. But instead of a broad consensus, the three-day meeting collapsed on the second day with wide differences among the Centre and the states and within the states coming out in the open.

It now looks difficult for the GST Council to finish its work and enable the codification of rates and other important criteria for administering the most important indirect tax reform, into a Bill for passage of Parliament in the winter session. The Centre cannot escape from its blame for seeking to distort the concept of simplifying tax administration. Instead of making the GST people-friendly, the surprise proposals would put more burden on the tax payers. By flagging four slabs to include the priority, less priority, standard and so-called `sin’ goods, the whole concept of tax compliance and rationalisation has been turned upside down. The most regressive among the proposal is to slap a cess over and above the highest slab, believed to be 26% to make for the shortfalls in the revenues of the states.

As it is, the GST dispensation approved by Parliament is flawed with key items like petroleum and natural gas being kept out of the purview. It is also believed that the most of the items of use to the middle class would either be covered in the top or the standard rate which could be 18% or 20%. There would be exemptions as well for the priority goods while for the less priority ones, the rate could be 12% or so. This complex structure would surely open a gold mine for the lobbyists among different industry groups. The fresh proposals have created so much confusion that even the ground covered in the first two meetings on threshold limit and assessing authorities is lost. Let it not be a lost opportunity.  Source – [22-10-2016]

Published by Business So Simple

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