A committee headed by the Chief Economic Adviser (CEA) will recommend the possible rates of Goods & Services Tax (GST), slated to be introduced from April 1 next year.
A Finance Ministry statement has announced the setting up of two committees to facilitate implementation of the new indirect tax regime. The other will be a Steering Committee under the co-chairmanship of the Additional Secretary in the Revenue Department and Member Secretary, Empowered Committee of State Finance Ministers. This move comes at a time when the government hopes to get the Constitution Amendment Bill (for introduction of GST) passed by Parliament in the Monsoon Session, expected to commence from the third week of July.
The CEA-led committee will “recommend possible tax rates under GST that would be consistent with the present level of revenue collection of the Centre and States. While making recommendations, this Committee would take into account expected levels of growth of economy, different levels of compliance and broadening of tax base under GST. The Committee would also analyse the sector-wise and State-wise impact of GST on the economy”, the statement said. The committee is expected to submit its report in two months.
For consultations The Steering Committee will monitor the progress of information technology preparedness, finalisation of reports of all the sub-committees on different aspects relating to the mechanics of GST and drafting of tax legislations and rules. It will also keep an eye on the progress on consultations with various stakeholders, such as trade and industry and training of officers. The statement also said that progress is underway to finalise various aspects of GST design, such as business processes, payment systems, matters relating to dual control, threshold, exemptions, place of supply rules, among others. This task is being undertaken through various sub-committees formed by the Empowered Committee.
It said the Goods and Services Tax Network is taking steps for preparing the IT infrastructure for the rollout, which shall enable online registration, filing of returns and getting refunds. Various State governments are also preparing the necessary back-end IT infrastructure for GST implementation of GST. Periodic reviews are being held in the Department of Revenue to monitor the progress of all these activities, it added.