GST Update – Council Meeting

GST Council Meeting scheduled on 25th November, 2016 postponed

The meeting of the GST council scheduled on 25th November has been postponed.

It is reported that the State Governments had suggested several changes in the Draft GST Acts, Rules and GST Compensation Bill and therefore the scheduled meeting is postponed to study the suggestions.

It  is also reported that the officials will meet on November 25,2016 to finalise the draft legislation and that it is to be placed in the public domain for comments.

With the present session of Parliament concluding on 16/12/2016, the GST Council will have to meet in the first week of December 2016 to finalise the Draft  Legislations.

Though no date has been specified for the next meeting of the GST Council, press reports indicate that the GST Council is likely to meet on 2nd and 3rd December, 2016.

GST – Jurisdiction discussion inconclusive

The Central Finance Minister and Finance Ministers of States met informally on November 20, 2016 to thrash out a political solution to the vexing issue of jurisdiction of Centre and the States.

Since the GST to be implemented is a dual GST with levy of Central GST and State GST concurrently on supply of Goods and Services and Integrated GST on interstate supply of Goods and Services, there has to be consensus on whether the Central Authorities or State Authorities have jurisdiction to assess a taxable person, so that the taxable person has to deal with only one assessing authority.

While the State Authorities want jurisdiction over all taxable persons with Annual Turnover of less than Rs.1.50 crores irrespective of whether the supply is of Goods or Services, the Central Authority want jurisdiction over taxable persons, within this taxable threshold, effecting supply of service and that the State Authorities exercise jurisdiction over taxable persons effecting supply of Goods.

With no political decision at this meeting on 20th November,2016 it is learnt that the officials would continue the discussion and the GST Council will deliberate on this issue in the next meeting scheduled on 24th and 25th November,2016.

It looks like the States would not relent and it is upto the Central Government to come to a compromise so as to meet the deadline of 1st April 2017 for roll out of GST.

Revised GST draft Bills circulated to State Governments

The Central Government has circulated the draft of the three GST related Bills -the Central Goods and Services Tax Bill, the Integrated Goods and Services Tax Bill, the Goods and Services Tax (Compensation for Loss of Revenue) Bill – to the State Governments.

States have been given seven days to send their suggestions/ comments. These three Bills are slated to be discussed by the GST Council on 24th and 25th November, 2016.

It had earlier been reported that the Union Finance Minister and Finance Ministers of the States would meet informally on 20th November, 2016 to take a political decision on the issue of dual control.

 

 

 

 

 

 

 

Will GST take back seat in Parliament?

Lok Sabha had listed the three draft Bills for introduction in the Winter Session of Parliament and the expectation was that the Bills would be passed early facilitating the roll out of GST by April 1, 2017.

With discussion on issues related to demonetization taking centre stage in Parliament, the GST Bills are unlikely to be taken up for discussion early.

Reports suggest that the GST related Bills may be taken up in the late November or early December, 2016.

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