Narendra Modi government may back 18-19% GST standard rate
As the centre and states begin consultations to decide the crucial rate for GST, the Modi Government is set to back a pocket-friendly rate, amid indications that a standard rate of 18-19% might receive the government's backing. The Cabinet cleared the establishment of the GST Council (the panel headed by the Union Finance Minister (FM) with all state FMs as its members) setting the stage for issues to be resolved with the government setting a two-month window for the exercise. States such as Kerala have suggested that the levy should be upwards of 20% to ensure that state revenue collections are not impacted by the GST rollout from April.
Source: The Times of India dated 13 September 2016
GST Council gets Cabinet nod, roll-out likely in April
The Cabinet approved the setting up of the GST Council and its Secretariat. The Empowered Committee of State Finance Ministers on GST could cease to be the forum at which the discussions between the centre and states would take place ,the centre said, after announcing the creation of the Council. The Empowered Committee is headed by Amit Mitra, Finance Minister of West Bengal, a state that is yet to ratify the constitutional amendment enabling the roll-out of GST.
Source: The Hindu dated 12 September 2016
GST recasts indirect tax board’s name
The Central Board of Excise and Customs (CBEC) is proposed to be renamed to the Central Board of Indirect Taxes (CBIT) as India readies itself for a paradigm shift in indirect taxation by transitioning to a GST regime. The new name will also encompass a growing area of revenue which the earlier name never acknowledged - service tax.
Source: Livemint dated 12 September 2016
Meghalaya ratifies GST Bill
The Meghalaya assembly unanimously ratified the GST Bill and became the 21st state to do so. Meghalaya is the third Congress-ruled state, after Himachal Pradesh and Arunachal Pradesh, to ratify the GST Bill.
Source: The Times of India dated 10 September 2016
Arunachal ratifies GST Bill for single tax rate
Arunachal Pradesh ratified the GST Bill that will help simplify the taxation process by implementing single tax rates all over the country. Deputy Chief Minister Chowna Mein moved the resolution for ratification of the Constitutional (One Hundred and Twenty-Second Amendment) Bill, 2014, in the House that was unanimously passed by voice votes.
Source: The Times of India dated 9 September 2016
President Pranab Mukherjee approves landmark GST Bill
A key milestone in the roll-out of GST was achieved after President Pranab Mukherjee gave his assent to the Constitutional Amendment Bill that enables the implementation of this indirect tax reform. So far, the government has managed to close out processes within deadlines, raising expectations that GST will be rolled out on 1 April 2017.
Source: Livemint dated 9 September 2016
Did you know?
The Model GST Law provides for a special composition levy scheme which proposes that a registered taxable person (whose aggregate turnover in a financial year does not exceed INR 5 million) would be able to discharge his GST liability at a simple rate of not less than 1% of the turnover during the year. As per the composition scheme, the said person shall not collect any tax from the recipient on supplies made by him nor shall he be entitled to any credit of input tax.
The composition levy scheme will not be available for those taxable persons who affect any inter-state supplies of goods and/or services.