GST Updates ( 25 Dec 2016)



GST Council makes headway on bills, stuck on taxpayer control


December 24, 2016

The all-powerful GST Council today made a reasonable headway on supporting legislations for the new indirect tax regime but its rollout from April 1 looked virtually impossible as it postponed discussion on the critical issue of administration and control of tax payers. The panel, which met for the seventh time since the Constitutional Amendment to replace central and state taxes with a Goods and Service Tax was approved in mid-September, tweaked the periodicity of payment of compensation for loss of revenue to states for implementation of GST to bi-monthly instead of previously decided quarterly payment. Also, the Council decided to create the kitty for the compensation from any other tax besides the cess on luxury and sin goods it had previously approved, as states saw revenues being dented by slowdown in economic activity and resultant tax collections following demonetisation. The GST Council will meet again on January 3-4 and take up the issue of which part of tax payers should be controlled by the Centre and who should be governed by the states after a single tax will replace levies like central excise, service tax and VAT. The dual control is also part of the Integrated-GST legislation that Parliament needs to pass before the new regime is rolled out. But for this stumbling block, mirror legislations of Central-GST and State-GST, that have to be approved by Parliament and state assemblies respectively, neared finality with most clauses agreed upon. Finance Minister Arun Jaitley said the law to provide for compensation to the states for loss of revenue was also approved by the GST Council at its two-day meeting which ended today but a final draft with legal language would be approved at the next meeting. “I am trying my best,” he said, when asked about the April 1 rollout schedule. “I am not going to bind myself with anything. Our effort is to do it as quickly as possible and I think we are making a reasonable headway.” Three consecutive meetings of the GST Council have not been able to take up the issue of dual control. Some states like West Bengal and Kerala want a minimum turnover criteria be fixed to decide who control which assessee, a proposal the Centre is not agreeable to because states lack expertise on levies like service tax.

“If you ask me what are the principle residuary items left, the main item of course is the IGST and dual empowerment issue. The second is the legally vetted language which will be placed in the next meeting on January 3-4,” Jaitley said, adding that the Council will take up items in each tax bracket after that. Source – http://indiatoday.intoday.in [23-12-2016]

Two-day meeting of GST Council begins today in Delhi


December 22, 2016
Two-day meeting of GST Council begins today in Delhi
The Goods and Services Tax (GST) Council will begin its two-day meeting in New Delhi today to consider the model laws and iron out differences on the issue of jurisdiction over assessees in the new indirect tax regime.

This will be the seventh meeting of the Council and Union Finance Minister Arun Jaitley will chair the meeting.

GST Council in its last meeting had cleared 20 chapters of the model GST law and today they will discuss the remaining seven chapters.

Earlier, the council have taken several important decision.

The decision includes the threshold limit of 20 lakh rupees exemption from levy of GST for normal states and 10 lakhs for the Special Category States.

Besides, to compensate states for five years for loss of revenue due to the implementation of GST, the base year for the revenue of the State would be 2015-16 and a fixed growth rate of 14 percent will be applied to it.

The government has time till September 16 next year to implement the GST Act as per the Constitution Amendment Bill passed by both the Houses with a two-thirds majority and by half of the states. Source – http://www.newindianexpress.com [22-12-2016]


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