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”.
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.
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