GST Council concluded its meeting yesterday
without any consensus on the dual control under GST. There is still a stumble
block of the administrative powers centre and state governments are going to
hold. After resolving the compensation issues, states are not ready to withdraw
their control upon the taxpayers. Earlier it was decided that states will have
sole control upon the taxpayers having aggregate turnover up to Rs. 1.5 crores
and above that both centre and state will have dual control in case of goods.
But for services it was decided that all the taxpayers shall remain under the
control of central government.
Next meeting on this issue has been planned on
11th and 12th December. Even if breakthrough is obtained
in this meeting, winter session will get over in next 3 days i.e. 15.12.2016.
In such a scenario it does not look like that government will be able to get
the bill passed so quickly. Even if it brings these bills as money bill, 14
days time have to be given to Rajya Sabha as well. It is most likely that GST
Bills will get passed in the budget session next year. GST is actually going
through the test of federal setup.
Apart from the dual control issue, GST
Council discussed 9 out of 27 chapters of CGST/SGST law, majority of which were
accepted by consensus. It looks like there shall be no issues with the drafting
of the law, but the big question regarding the dual control is still to be
answered. Also states apprehended that due to demonetization they are likely to
face losses on the 3rd Quarter of FY 2016-17 and hence the same should
be compensated by some means.
Looking at the issues one after the another,
April 2017 is certainly not the date when we can expect the biggest indirect
tax reform to roll out. It is certainly going to get postponed by one Quarter or
even more.
by:
Keshav R Garg
(B.Com, FCA, CS,
ISA (ICAI))
Faculty for GST:
Indirect Tax Committee of ICAI
Author: Bharat's
GST Ready Reckoner
A Handbook on GST
Adviser for GST:
Industries Association of Chandigarh
Member: Indirect
Tax Committee of CII, PHDCCI, MyGst.MyTax Foundation
Address: 3328,
Sector 27 D, Chandigarh, India - 160 019
Phones:
+91-172-461-3328, +91-98880-90008
Mails: mygst.mytax@gmail.com, keshavgarg@kdai.in
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