7 April, 2017
GST: An Annual Game Changer – Countdown Begins: Lower House of Indian Parliament Approves Draft GST Legislations
Inching closer towards a unified system – ‘one nation one tax’, the Lok Sabha on March 29, 2017 passed the four key Draft Goods and Services Tax (‘GST’) Bills:
- The Central Goods and Services Tax Bill, 2017;
- The Integrated Goods and Services Tax Bill, 2017;
- The Goods and Services Tax (Compensation to States) Bill, 2017;
- The Union Territory Goods and Services Tax Bill, 2017.
The Hon’ble Finance Minister said the GST, which will usher in a uniform indirect tax regime in the country, will make commodities "slightly cheaper". The Finance Minister also pointed that food articles which are currently not taxed will continue to be zero rated under GST and all other commodities would be fitted into the nearest tax bracket.
GST Council
In terms of Article 279A of the Constitution of India, the President of India has constituted a Goods and Services Tax Council (GST Council) which aims to develop a harmonized market of goods and services in the nation. The GST Council has been formed to take key decisions with respect to taxes to be subsumed in GST, exemptions & threshold, GST rates etc.
Update:
The GST Council in its 13th meeting held on March 31, 2017, has tentatively approved the four set of Rules for Valuation, Composition Levy, Transition and Input Tax Credit.
The GST Council had earlier finalized five sets of draft Rules pertaining to Registration, Refunds, Returns, Payment and Invoice. These set of draft rules were partly amended and altered to bring them in conformity with the GST Legislations.
Way Forward
The next meeting of the GST Council will be held on May 18-19, 2017, where the 4 new sets of Rules for Valuation, Composition Levy, Transition and Input Tax Credit will be given a final approval and the rate structure in relation to individual commodities will be taken up for consideration.
The States will now take up the State Goods and Services Tax Bill in in their respective State Assemblies for adoption, which would be more or less the replica of the Central GST and Union Territory GST Bills. The Government is simultaneously planning a massive outreach to increase awareness and get stakeholders trained and ready for the tax.
The introduction of GST is imminent, businesses should initiate exercise so as to analyze the overall impact of GST. Further, every business should equip itself to not only comply with the law but also draw maximum benefits from it through strategic planning.
Need of the hour for Corporate India is GST readiness.
For further information, please contact:
Sawant Singh, Partner, Phoenix Legal
sawant.singh@phoenixlegal.in
