Indian lawmakers say when the GST is regularised through an Act after further clearance by the lower house of the parliament – Lok Sabha and mandatory endorsement by majority of the states, consumers should benefit in many ways. “He was in his office in Parliament, and still he did not come to the house”, he had charged. The AIADMK staged a walk-out before the bill was passed in the upper house.
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“The GST roll-out deadline of April 1, 2017, is certainly stiff. The tax rate will come down and many goods will cost less”, said Finance Minister Arun Jaitley at a press conference yesterday.
Addressing the media here, Mr Jaitley said, ‘We are going to make it as reasonably quick as possible and the date by which we are able to make it, will have to be seen.
“Testing of and integration of GST front-end and back-end before the stakeholders will be done between January and March next year”, Adhia said. “The final call is to be taken by the GST Council”. “It will impact the entire economy”, said Mr Rajeev Dimri, leader of indirect tax at consultancy BMR and Associates. The GST rules have to be notified. But it is still a huge improvement on the existing system.
Under the proposed 2016 amendments of GST Bill circulated, GST Council will be required to establish a mechanism for adjudication of disputes, which could arise between the Centre and states or among states themselves. Alcohol for human consumption is exempted from the purview of GST. Now the BJP government brought the bill with certain modifications. In order to win support for the plan, the government had to offer a number of concessions to India’s opposition Congress Party and to state governments, including compensation for lost revenue over the next five years.
Currently what the tax payers are paying is phenomenally much higher.Now it will gradually slide down. We have already made a plan for training of 60,000 officials, which has already started.
The GST will have two components keeping in mind the federal structure of India: the Central GST (CGST) and the State GST (SGST).
The main rate of the GST is still a topic for debate, with experts suggesting it is likely to end up at around 18 percent.
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“Getting all the states ready to implement a nation-wide GST may therefore take more time than what is now anticipated”, Deutsche Bank said in a research note.
