Skip to main content

Jaitley says July 1 target for GST rollout, but some states still not confident

By
Finance Minister Arun Jaitley chairing the ninth GST Council Meeting, at Vigyan Bhawan in New Delhi on Monday. (PTI)

The central government today formally accepted that it will not be able to meet the April 1 deadline for implementing the
Goods and Services Tax (GST). The new deadline has been set for July 1, 2017.

At the end of the ninth GST Council meeting, finance minister Arun Jaitley said: “The broad consensus among states is that
July 1 seems more realistic”.

But many states hinted that even the new deadline looks difficult to meet. “A lot of work is left, in fact, thirteen things
need to be done before we even consider implementing GST. So I don’t want to comment want to on whether the July 1 deadline
can be met,” said West Bengal finance minister, Amit Mitra.

Jaitley said that Monday say consensus on tax on territorial waters and dual control, which deals with who taxes whom between
the states and the centre.

90% of taxpayers with up to Rs 1.5 cr annual turnover will be assessed by states, 10% by Centre, while half of those above 
Rs 1.5 cr to be assessed by the centre and the remaining half by states.

“States to be empowered to tax any economic activity in territorial water up to 12 nautical miles,”said Jaitley resolving an
issue that had emerged in the past Council meetings.

But state finance ministers point out that there are several other issues that need to be resolved before GST can be implemented.

“While the 4 tax slabs for GST have been decided, but which goods and services is put in which slab is yet to be decided,” 
said a state finance minister who did not wish to be quoted.

Three legislations need to be ironed out before GST is rolled out: CGST, IGST and SGST. The Council has to approve these before
the legislations are placed for vetting before the state assemblies and the Parliament.

Several states also have concerns about the dispute resolution mechanism once the new indirect tax is implemented and the Council
is yet to give its final seal of approval to the compensation issue.

Experts have cheered the move to formally defer the GST deadline. “With indication of revised implementation date of July 1, 2017
for GST, industry gets much needed clarity and some additional time for preparation for this huge reform,” said Pratik Jain, 
partner and leader, indirect tax, PwC.

“What remains now are the rates for various goods and services which I am sure will be decided in March 2017,” said Harishanker 
Subramaniam, national leader, indirect tax, EY India.


02ND FUBRUARY, 2017, THE HINDUSTAN TIMES, NEW-DELHI

Comments

Post a Comment

Popular posts from this blog

New income tax slab and rates for new tax regime FY 2023-24 (AY 2024-25) announced in Budget 2023

By
  Basic exemption limit has been hiked to Rs.3 lakh from Rs 2.5 currently under the new income tax regime in Budget 2023. Further, the income tax slabs in the new tax regime has been changed. According to the announcement, 5 income tax slabs will be there in FY 2023-24, from 6 income tax slabs currently. A rebate under Section 87A has been enhanced under the new tax regime; from the current income level of Rs.5 lakh to Rs.7 lakh. Thus, individuals opting for the new income tax regime and having an income up to Rs.7 lakh will not pay any taxes   The income tax slabs under the new income tax regime will now be as follows: Rs 0 to Rs 3 lakh - 0% tax rate Rs 3 lakh to 6 lakh - 5% Rs 6 lakh to 9 lakh - 10% Rs 9 lakh to Rs 12 lakh - 15% Rs 12 lakh to Rs 15 lakh - 20% Above Rs 15 lakh - 30%   The revised Income tax slabs under new tax regime for FY 2023-24 (AY 2024-25)   Income tax slabs under new tax regime Income tax rates under new tax regime O to Rs 3 lakh 0 Rs 3 lakh to Rs 6 lakh 5% Rs 6
Post a Comment
Read more

Jaitley plans to cut MSME tax rate to 25%

By
Income tax for companies with annual turnover up to ?50 crore has been reduced to 25% from 30% in order to make Micro, Small and Medium Enterprises (MSME) companies more viable and also to encourage firms to migrate to a company format. This move will benefit 96% or 6.67 lakh of the 6.94 lakh companies filing returns of lower taxation and make MSME sector more competitive as compared with large companies. However, bigger firms have shown their disappointment since the proposal for reducing tax rates was to make Indian firms competitive globally and it is the large firms that are competing globally. The Finance Minister foregone revenue estimate of Rs 7,200 crore per annum for this for this measure. Besides, the Finance Minister refrained from removing or reducing Minimum Alternate Tax (MAT), a popular demand from India Inc., but provided a higher period of 15 years for carry forward of future credit claims, instead of the existing 10-year period. “It is not practical to rem
1 comment
Read more

Don't forget to verify your income tax return in August: Here's the process

By
  An ITR return needs to be verified within 120 days of filing of tax return. Now that you have filed your income tax return, remember to verify it because your return filing process is not complete unless you do so. The CBDT has reduced the time limit of ITR verification to 30 days (from 120 days) from the date of return submission. The new rule is applicable for the returns filed online on or after 1st August 2022. E-verification is the most convenient and instant method for verifying your ITR. However, if you prefer not to e-verify, you have the option to verify it by sending a physical copy of the ITR-V. Taxpayers who filed returns by July 31, 2023 but forget to verify their tax returns, will get the following email from the tax department, as per ClearTax. If your ITR is not verified within 30 days of e-filing, it will be considered invalid, and may be liable to pay a Late Fee. Aadhaar OTP | EVC through bank account | EVC through Demat account | Sending duly signed ITR-V through s
Post a Comment
Read more