Recently the IRS Association general secretary Shrawan Kumar Bansal issued a statement urging the Government to relieve the private companies holding 51 percent shareholding in GSTN, the IT platform created for the collection of GST.
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“The central government is examining GSTN and may hold majority stake”. But the GSTN is funded by the central and state governments. In a GST scenario, the goods and services used for extraction and selling would come under GST, whereas crude and natural gas would be outside GST.
The Centre has also notified the GST Council, to be headed by Finance Minister Arun Jaitley, which will decide on the tax rate, exempted goods and the threshold under the new taxation regime. The Association leaders are expected to meet Prime Minister Narendra Modi on Wednesday to raise their concerns on the implementation patterns of the GST.
The goods and services tax (GST) may have multiple rates on the lines of some European countries and a revenue neutral rate will not be possible initially, Revenue Secretary Hasmukh Adhia said in Ahmedabad on Saturday (17 September).
The Constitution (122nd Amendment) (GST) Act, 2014, passed by Parliament last month to roll out GST, has made changes in Entry 84 of List 1 or the Union List of the 7th Schedule of the Constitution.
With the passage of Constitutional Amendment Bill for GST, the biggest indirect tax reform since independence will soon be a reality.
“Ideally, some of the sections should have been notified with effect from 1 April 2017 to ensure that the Centre could have continued levying excise duty and service tax”. They had a view that the clause takes away the power of the central government as it does not allow them to levy excise duty on manufacturing as well as restricts leveraging goods and service tax.
The notification said the government will not levy excise on goods other than petroleum products from this date, implying loss of power to tax other goods.
Entry 97 says that the Centre will have powers on “any other matter not enumerated in List II or List III, including any tax not mentioned in either of those lists”.
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Nangia & Co Director Rajat Mohan said, “The government may say the power to levy excise, service tax could be drawn from Entry no. 97 from the Union List which is residuary entry”.
