IMPORTANT DOCUMENTS.

Wednesday, 7 September 2016

April 1, 2017 target for introducing the Goods and Services Tax (GST) could only be met if the GST rates are decided, the issue of dual control over assessment and scrutiny of assessees is resolved, and settlement is reached for exemption to goods of local importance.

A senior official on Wednesday admitted that the April 1, 2017 target for introducing the Goods and Services Tax (GST) could only be met if the rates are decided, the issue of dual control over assessment and scrutiny of assessees is resolved, and settlement is reached for exemption to goods of local importance.
The official also indicated that the Central and integrated Bills would be money Bills instead of Finance Bills, as the has been asking for. Passage of a cannot be held up in the Rajya Sabha, where the ruling NDA government is in a minority. 

While the wants the rate below 20%, the states are calling for more than 20%. A call on this will be taken by the proposed Council, which is yet to be set up. 


The official told reporters that it  is not necessary to approach the Cabinet for constitution of the Council which will recommend on major issues, besides the rates such as the model Bill, dual control etc. This is because Parliament has already passed the Constitutional Amendment Bill on which has a provision for the Council. The Council will comprise the Union finance minister, the Union minister of state for finance in charge of revenue, state finance ministers or any other minister nominated by the states. 

The government is yet to notify the date for the Council, the official said. However, the Amendment Bill says that the President will order setting up of the Council within 60 days of the commencement of the Constitutional Amendment Act.  More than half of the states have already ratified the Bill and the President is likely to soon give his assent. 

A proposal is also under consideration to tax those industries which are availing benefits under area- based exemptions and then reimburse them, the official said. 

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