Monthly Archives: Dec 2016

GST

GST Council makes headway on bills, stuck on taxpayer control…

Dual control is part of Integrated-GST that Parliament needs to pass before new regime rolls out…!!!

The all-powerful GST Council Friday 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’ beside the cess on luxury and sin goods it had previously approved, as states saw revenues being dented by a slowdown in economic activity and resultant tax collections following demonetisation.

The GST Council will meet again on January 3-4 2017 and take up the issue of which part of taxpayers 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 CentralGST and State-GST, that have to be approved by Parliament and state assemblies respectively, neared finality with most clauses agreed upon.

#GSTnews

By- CA Amit Shah

Read More