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19 June 2017
The
GST Council on Sunday unanimously agreed on a July 1 rollout of the Goods and
Services Tax regime despite some pending issues, while relaxing the return
filing deadline for the first two months, and approved the rules on
anti-profiteering to protect consumers.
While
Union Finance Minister Arun Jaitley, making these announcements, said India
does not have the "luxury of time" to defer implementation of the new
indirect tax regime, stakeholders hailed the Council's decision to give the
initial two-month relaxation in filing of returns.
"The
GST Council categorically agreed on the implementation of GST from July
1," Jaitley told reporters here after the penultimate meeting of the
Council before the single pan-India GST is officially rolled out on the
midnight of June 30, replacing the existing myriad central and state levies on
both goods and services. The Total
Investment & Insurance Solutions
"A
number of companies and trades have been raising the issue of the lack of their
own preparedness. We do not have the luxury of time to defer implementation of
GST," he said, announcing that the next meeting of the Council headed by
him would be held on June 30.
Regarding
the government's preparedness, Jaitley noted that over 80 per cent registered
entities have already received their provisional GST registrations.
"If
you take from the old system of registrations, then there are 80.91 lakh
assessees, of whom some will get excluded. Registrations are going on
satisfactorily and 65.6 lakh have already taken provisional registration, which
is good enough to file returns," he said, adding that some new trades will
come under the GST for the first time.
In
this connection, the Finance Minister said the Council has allowed businesses a
relaxation of time for the first two months (July-August) for filing their
returns. These would also need to submit only a simple declaration initially,
and would have time to furnish the exact "invoice-by-invoice data"
later. The Total Investment & Insurance
Solutions
The
Council also approved the structure and rules relating to an anti-profiteering
authority (APA). The Total Investment
& Insurance Solutions
"We
want to keep it as a deterrent and hope we are not compelled to use the
APA," the Finance Minister said.
Revenue
Secretary Hasmukh Adhia said that under the proposed APA, a company can be
asked to roll-back the price and also refund an amount equal to what it has
made through the hike in prices. The Total
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"It
will have a sunset clause of two years," Adhia said.
The
GST Council on Sunday also decided on a two-slab structure for taxing lottery
tickets, which Jaitley said proved to be a contentious issue.
While
state-run lotteries will be taxed at 12 per cent under the GST,
state-authorised private lotteries will attract tax at the highest rate of 28
per cent.
The
Council deferred a decision on e-way bills due to lack of consensus, which
means states which have an e-way bill structure in place can continue with it,
while others are exempt.
"Till
a consolidated rule is framed by consensus, the transient rule will
continue," Jaitley said on the e-way bill issue. The Total Investment & Insurance Solutions
E-way
bill is an electronic way bill for movement of goods which can be generated on
the GST Network (GSTN) portal. Movement of goods of more than Rs 50,000 in
value cannot be effected by a registered person without an e-way bill.
Briefing
reporters earlier during a pause in the meeting, Andhra Pradesh Finance
Minister Yanamala Ramakrishnudu said he has requested that textiles and
fertilisers be exempted from the GST. The Total
Investment & Insurance Solutions
The
Council also considered the revision of tax on hotel rooms and decided that
while those in the range of Rs 2,000-Rs 7,500 a day tariff would face 18 per
cent tax, rooms with daily tariff above Rs 7,500 would be taxed at 28 per cent.
Restaurant service in five-star hotels would attract 18 per cent tax, Jaitley
said. The Total Investment & Insurance
Solutions
He
revealed that only three states -- Tamil Nadu, Punjab and Jammu and Kashmir --
were still to complete their necessary legisaltive formalities for implementing
the GST regime.
Hailing
the GST Council's decision to give initial two-months' relaxation in filing of
returns, various stakeholders said the move will give ample time for the
businesses to prepare their IT systems and comply with the new indirect tax
regime.
"It
will give more time to traders to prepare themselves to comply with GST
law," the Confederation of All India Traders (CAIT) said welcoming the
announcement by the Finance Minister. The Total
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Pratik
Jain, Partner and Leader Indirect Tax, at PwC India, said: "Relaxation of
time for filing initial invoice-wise returns is a welcome move which, to some
extent, allays fears of readiness both from Goods and Services Tax Network
(GSTN) and industry's point of view."
Ansh
Bhargava, Senior Consultant, Taxmann.com said: "It is a welcome decision
by the GST Council on the filing as it would allow taxpayers to get accustomed
and adapt to the new system of taxation." The Total Investment & Insurance Solutions
Rajeev
Dimri, Leader, Indirect Tax, BMR and Associates LLP, said: "This measure
should significantly help in assuaging the concerns of inadequate readiness of
GSTN being faced by the industry and confirms that preparedness of GSTN will
not be a roadblock for the implementation of GST as was being anticipated by
the industry."The Total Investment
& Insurance Solutions
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