SKP Group
SKP GST Update
17 January 2017 | Issue 27
Synopsis of the 9th GST Council meet: GST roll out by 1 July 2017 a ‘realistic timeline’

The GST Council concluded their 9th meeting on 16 January 2017, resolving the most contentious issue of ‘dual control’ and setting a realistic timeline of 1 July 2017 for rolling out GST in India. The summary of the GST Council meet is outlined below:
  • Consensus on ‘dual control’ achieved:
    States will evaluate and administer 90% of the assesses with an annual turnover of INR 15 million or less. The remaining 10% with an annual turnover of INR 15 million or less will be controlled by the centre. The liability to control and administer assesses with an annual turnover of more than INR 15 million will be shared by the centre and states in a 50:50 ratio.
  • States will have the power to levy tax on economic activity within 12 nautical miles of territorial waters even though such rights are constitutionally bestowed on the centre. It was reported that the Finance Minister Arun Jaitley issued a statement saying The power to levy and collect Integrated-GST, a tax on inter-state movement of goods and services, will lie with the Centre but by special provisions in law, states will also be cross-empowered”[1].
  • Furthermore, the Finance Minister said that 1 July 2017 looks more realistic for the introduction of GST in India compared to the earlier planned target date of 1 April 2017.
  • The draft of the Integrated Goods and Services Tax (IGST) law will be discussed at the next meeting on 18 February 2017.
SKP's comments
The long-awaited consensus on the ‘dual control’ issue is an assuring event which showcases the strong determination of the government to introduce GST regime in India in the next fiscal year. With a realistic time line of 1 July 2017 for rolling out GST, as announced by the Finance Minister, businesses need to chart out their implementation plans and get ready to be GST compliant from the announced date.

19 Adi Marzban Path | Ballard Estate | Fort | Mumbai 400 001 | India
+91 22 6730 9000 |
skp.gst@skpgroup.com | www.skpgroup.com
Mumbai | Pune | Hyderabad | New Delhi | Gurgaon | Chennai | Bengaluru
Member of Nexia International
LinkedIn
Twitter
Facebook
Google+
YouTube
DISCLAIMER
This update contains general information which is provided on an “as is” basis without warranties of any kind, express or implied and is not intended to address any particular situation. The information contained herein may not be comprehensive and should not be construed as specific advice or opinion. This update should not be substituted for any professional advice or service, and it should not be acted or relied upon or used as a basis for any decision or action that may affect you or your business. It is also expressly clarified that this update is not intended to be a form of solicitation or invitation or advertisement to create any adviser-client relationship.

Whilst every effort has been made to ensure the accuracy of the information contained in this update, the same cannot be guaranteed. We accept no liability or responsibility to any person for any loss or damage incurred by relying on the information contained in this update.


SKP Business Consulting LLP is a member firm of the "Nexia International" network. Nexia International Limited does not deliver services in its own name or otherwise. Nexia International Limited and the member firms of the Nexia International network (including those members which trade under a name which includes the word NEXIA) are not part of a worldwide partnership. For the full Nexia International disclaimer, please click here.

© 2017 SKP Business Consulting LLP. All rights reserved.