Goods and GST Bill passed

[Ganeshan Kalyani]

Dear All,

GST Bill is passed in Rajya Sabha on 03. 08.2016.

A panel under chief economic adviser Arvind Subramanian has recommended a revenue-neutral rate of 15-15.5%, with a standard rate of 17-18% be levied on most goods and all services.

But, there has been no agreement yet on rates of various goods and services, which remains a tricky issue. According to the Bill, passed in the Lok Sabha in May 2015, the rates were to be decided by a GST council headed by the central finance minister with state finance ministers as members.

Let us wait.

Thanks.

[Ganeshan Kalyani]

All four bills (The Central GST, Integrated GST, Union Territory GST and the Compensation Law) related to GST was on Wednesday passed in Lok Sabha with voice votes.

[Ganeshan Kalyani]

The CGST and IGST Bills extend to whole of India except Jammu & Kashmir.

[Ganeshan Kalyani]

All four bills related to GST was on Wednesday passed in Lok Sabha with voice votes. With this government is positive to implementation of GST by 1st July 2017.

[Ganeshan Kalyani]

Goods and Services Tax (GST) bills may have reached the final lap with their introduction in the Parliament on Monday but informed sources told DNA Money the road from here to the final of the proposed unified indirect tax could get stretched with the government seriously looking at shifting the date of the new tax going live from July 1 to September 1.

[Ganeshan Kalyani]

This could be done to give industry more time to prepare for the new indirect tax regime and for further fine-tuning the GST bills.

[Ganeshan Kalyani]

"There seems to be an informal acceptance of GST date being pushed to September 1 among officials in the finance ministry, revenue department and CBEC," said one of the souro spoke on condition of anonymity.

[Ganeshan Kalyani]

The exercise of finalising five draft GST legislations – Central GST (CGST), State GST (SGST), Union Territory GST (UTGST), integrated GST (IGST) and Compensation to states – by the GST Council, which comprises of finance ministers and officials from all states and is responsible for working out the broad contours for the draft bills, is slightly behind schedule.

[Ganeshan Kalyani]

There have been representations by various industry and trade lobbies to the government for an extension of the GST deadline.

[Ganeshan Kalyani]

Another source said many leading industrialists have communicated directly to the Prime Minister Narendra Modi on various concerns relating to certain provisions in the draft bills.

[Ganeshan Kalyani]

GSTN launches a facility ''Check Registration Status'' for verification of registrations to promote transparency under GST. Goods and Services Tax Network (GSTN) has launched a facility, open to all, for verification of registrations. It provides with an option to check the enrolment and registration status of a person using his state and registration number or provisional ID given for enrolment purposes or Permanent Account Number.

[Ganeshan Kalyani]

In addition to above, the Central Board of Excise and Customs (CBEC) has announced the availability of an additional e-sign services by NSDL, from 04 April 2017. E-sign service is an online electronic signature service that can facilitate an Aadhaar holder to digitally sign a document. This will promote the signing of enrolment applications using Aadhaar number of the authorised signatory.

[Ganeshan Kalyani]

The enrolment under GST can now be done till 31 April 2017.

[Ganeshan Kalyani]

Revenue Secretary Hasmukh Adhia has said that the biggest challenge for Government would be the outreach to trade and industry in next 3 months. He adds that right now focus is on migration existing tax payers to GST (transition). Currently, only 60% of the assessees have migrated to GST.

[Ganeshan Kalyani]

The Goods and Services Tax (GST) Council approved the drafts of four sets of rules and finalized five others on Friday making steps towards GST roll out. These rules are for Valuation, Composition, Input Tax Credit and Transition. Five other rules involving registration, payment, refund, invoices and returns, the drafts of which were already approved.

[Ganeshan Kalyani]

As government moves nearer to implementation of Goods and Services Tax (GST) in India, it has provided India Inc. one last chance to represent its concerns around GST Bills. 10 industry specific groups have been formed to iron out issues. The sectors up for review include banking, finance, insurance, telecom, exports, IT/ITeS (information technology enabled.

[Ganeshan Kalyani]

As a pre-requisite to shift to Goods and Services Tax (GST) Regime, every existing tax payer is required to migrate it’s existing indirect tax registration to GST. Deadline to migrate all state VAT, Service Tax and Excise Duty registrations was set at 31st March 2017.

[Ganeshan Kalyani]

Considering delay in rolling out laws and lack of preparation the timeline of GST enrollment is extended up to 31st April, 2017.

[Ganeshan Kalyani]

Under GST a provision of payment of GST under reverse charge by a registered person upon procurement from un-registered person is provided.

[Ganeshan Kalyani]

GST Bills were introduced as 'Money Bill' in Lok Sabha.

[Ganeshan Kalyani]

In context to GST Rates, Revenue Secretary states that tax incidence will be closer to existing ones, while service tax rates will be 5%, 12% & 18%, 18% being standard rate.

AI Summary

Goods and Services Tax consolidation creates a dual GST framework with GST Council oversight and a shared IT platform for compliance.
Goods and Services Tax establishes a destination based, dual tax framework subsuming central and state indirect levies, administered through a GST Council and implemented via a shared IT platform (GSTN). The model law sets out registration and return regimes, HSN/SAC classification by turnover bands, input tax credit carry forward, composition and reverse charge rules, refund and valuation procedures, compensation to states during transition, and institutional arrangements for cross empowerment, adjudication and dispute resolution.