Policy

It’s official: GST only from July 1

Our Bureau New Delhi | Updated on January 12, 2018 Published on January 16, 2017

Finance Minister Arun Jaitley addresses the media after the GST Council meeting in New Delhi on Monday. Revenue Secretary Hasmukh Adhia is to his right. - RAMESH SHARMA

Finance Minister says date ‘more realistic’

The Centre and States managed to break the deadlock on the issue of administrative control of taxpayers under the Goods and Services Tax, but the tax will most likely be rolled out only on July 1, instead of April 1, as previously planned.

“July 1 appears to be more realistic” as a target date for GST’s rollout, said Finance Minister Arun Jaitley. “Since GST is a transactional tax, it can be introduced at any time,” he said after the ninth meeting round of the GST Council.

The Centre and States agreed to share the entire taxation base for assessment with a horizontal division. Under the formula, which will apply for both goods producers and service providers, States will have the power to assess 90 per cent of all assessees with a GST turnover of ₹1.5 crore or less. The remainder will be with the Centre.

Assessees with a GST turnover of over ₹ 1.5 crore will be assessed in a 50:50 ratio by the Centre and States.

“Intelligence-based enforcement powers will vest with assessing officers of both the Centre and States for all assesees,” said Jaitley, who chairs the Council.

Computerised division

The division of taxpayers between the Centre and States will be done through a computerised programme. “Each assessee will be assessed only by one authority,” Jaitley stressed. All States except West Bengal accepted the proposal. West Bengal was keen that all assessees with a turnover of up to ₹1.5 crore remain with States.

Centre’s preserve

Only the Centre will levy and collect Integrated GST (IGST), except for special provisions, wherein the States will also be cross-empowered.

In the contentious issue of place of supply in IGST for States, the assessment will be done by the Centre.

The GST Council also reached an agreement on taxing of high-sea trade up to 12 nautical miles into territorial waters. Though this belongs to the Centre, Jaitley said States can collect tax on any economic activity in the territory.

The GST Council will meet again on February 18. In the meantime, the technical group of officers will finalise the draft legislations for the Central, State and Integrated GST, and compensation.

Jaitley said once the drafts are cleared, they would go to the respective legislative bodies for approval. Officers will then work on the fitment of commodities into various tax slabs. “This will take us into the month of March,” he said, adding that trade and industry will also require adequate notice, while the GST Network would also have to be modified.

Experts said businesses now have adequate time to prepare for GST.

“It’s now clear that the new date for GST implementation will be July 1, 2017, which gives some time for industry to prepare. What remains now are the rates for various goods and services,” said Harishanker Subramaniam, National Leader (Indirect Tax), EY India.

Published on January 16, 2017

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
null
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.