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Arun Jaitley: System geared up for GST from July 1


The government has notified the implementation of the central goods and services tax (C-GST) from July 1, making it clear that the roll out of the new indirect tax regime is on course. “I don’t see much of a problem. Small issues will always arise whenever you make a change of any kind. But I’m sure the system is fully geared up and the system will eventually smoothen itself out,” finance minister Arun Jaitley said after a Cabinet meeting on Wednesday.

Asked about West Bengal chief minister Mamata Banerjee’s statement against the implementation of GST from July 1, Jaitley said the date had been decided by consensus by the GST Council, which meant by the Centre as well as all the states.

“It [the date] has not been decided by the Centre. And more importantly, there is a constitutional mandate and that mandate is that on 16th of September, you
will lose the right to collect existing taxes. So the alternate system has to come into pl ..“We have spent so much time in building consensus and fortunately, we were able to build consensus. Therefore that spirit of consensus should be maintained by all. Even the function we are organising symbolises that larger national consensus,” he said.

When asked about Trinamool and some other Opposition parties planning to boycott the midnight launch function. States will now notify their respective GST Acts and other provisions including the roll out date.

The Centre has also notified some For purchases from unregistered vendors, a limit of Rs 5,000 a day has been prescribed for payment of tax under reverse charge, which provides relief from cumbersome compliances in case of small and petty expenses.

Further, for purchases exceeding this value, instead of self-invoicing for every transaction, a facility of doing this on a monthly basis has been provided for. A simple summary format for the first two months has also been prescribed (GSTR- 3B) in line with the announcement made in the last GST Council meeting.

It has notified the number of Harmonised System of Nomenclature digits required to be printed on a tax invoice. A registered person with an annual turnover of up to Rs 1.5 crore in the preceding financial year will not be required to mention the digits.

Those with turnover between Rs 1.5 crore and Rs 2 crore will mention two digits and those above Rs 5 crore will mention four digits.Centre has also notified the rate of interest of 18% for delayed payments, 24% for excess claim of input tax credit or undue or excess reduction in output liability, 6% in case of withheld refund and 9% for delayed refund after an order of adjudicating authority of appellate tribunal.

The government would also unveil a new simplified procedure on Thursday for exporters to ensure a smooth transition to GST.“The new procedures will be in line with the GST,” a government official told ET. Customs has already started testing new forms on its systems. Central Board of Excise and Customs has also issued a set of guidance for importers and exporters to help them transition  to GST changes in GST to give relief to small vendors.

The Economic Times New Delhi, 29th June 2017

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