16-01-2017 is a significant milestone and breakthrough for GST in India. The Centre and the states reached a consensus on the dual control issues on Monday .i.e. 16-01-2017 preparing ground for the rollout of the biggest tax reform from 1 July, as said Finance Minister Arun Jaitley.
The states would do 50 per cent of assessees above Rs 1.5 crore turnover and 90 per cent of less than Rs 1.5 crore turnover. The Centre would get to assess 50 per cent of above Rs 1.5 crore turnover and 10 per cent of less than Rs 1.5 crore turnover.”
Jaitley said it was confined to the extent of the 90:10 division between states and the Centre, and on other issues, he was in agreement with all other GST Council members. The changes would be incorporated in the draft legislations relating to Integrated GST (IGST), state GST (SGST) and Central GST (CGST), following which they would be shared with the Council at its next meeting on February 18.
States will have taxation powers up to 12 nautical miles in offshore areas.
The consensus at the GST Council meeting on jurisdiction over assessees as well as fixing rollout date on July 1 gives industry the much-needed clarity and additional time for preparing for the reform, experts said.
It is a benefit to the Industry as the revised implementation date of July 1, 2017 for GST. Industry will get more time to prepare themselves with much clarity in the biggest reform in Indirect taxation in India. It is delighted moment for the Industry that there has been a consensus in today's meeting of the GST Council and a definitive announcement of the rollout date.
It looks that government will be able to pass the GST laws in the parliament very soon. Once the GST laws passed, it will help to the Industry to prepare for GST and to migrate to the new system of indirect taxation i.e. GST. Passing the GST laws as soon as possible will be a very helpful measure for the Business entities and business persons.
He said since it is a transactional tax, it can be introduced any time. The Council members felt that industry and trade should be given some adequate notice and once the rates are decided, the systems of GSTN will have to be modified suitably, he said.
Four crucial steps to be completed by March are
- Finalizing the draft legislation and rules,
- Getting these approved by the legislative bodies and
- Deciding the rate slabs.
- The rates for various goods and services
Since the GST will miss the April 1 deadline, the indirect tax receipts estimates in the upcoming Budget for 2017-18 will include a combination of excise and service tax for three months and GST for the next nine months, a senior government official said.
CAclubindia
