Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 12-10-2016 Last Replied Date:- 18-10-2016 – Recommendations to be made by Council As per Article 279A (4), the Council will make recommendations to the Union and the States on important issues related to GST, like the goods and services that may be subjected or exempted from GST, model GST Laws, principles that govern Place of Supply, threshold limits, GST rates including the floor rates with bands, special rates for raising additional resources during natural calamities/disasters, special provisions for certain States, etc. The Goods and Services Tax Council shall make recommendations to the Union and the States on- the taxes, cesses and surcharges levied by the Union, the States and the local bodies which may be subsumed in the goods and services tax; the goods and services that may be subjected to, or exempted from the goods and services tax; model Goods and Services Tax Laws, principles of levy, apportionment of int
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erred by this article, the Goods and Services Tax Council shall be guided by the need for a harmonised structure of goods and services tax and for the development of a harmonised national market for goods and services. The Goods and Services Tax Council shall establish a mechanism to adjudicate any dispute – between the Government of India and one or more States; or between the Government of India and any State or States on one side and one or more other States on the other side; or between two or more States, arising out of the recommendations of the Council or implementation thereof. Decisions / issues considered at First Meeting of GSTC (22-23 September, 2016) The first meeting of the newly constituted GST Council was held on 22-23 September, 2016 in which following issues were decided / considered: Rules for conduct of business at meetings. Time table of GSTC meetings was set keeping the April 1st, 2017 deadline. Consensus on composition scheme with gross turnover of ₹ 50 lak
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0 September, 2016 was to consider and approve the draft rules released for GST in relation to registration, payment, return, refund etc. Though the draft rules were put in public domain only on 27th September leaving few hours for public to give feedback, the GSTC approved the said rules in just one sitting. The decisions, inter alia, are supposed to include the following – To continue with area based exemptions and incentives of excise duly available to north east states and hill states but to be provided by way of refund and not by way of exemptions, as presently done. Presently, centre allows such exemption to eleven states. There will be levy of tax on all exempted entities under GST and the Centre or the State, as the case may be, that gets the tax shall have to reimburse such tax collected to the exempted entity. However, it is not clear as to whether such refund shall be automatic through GSTN or entity will have to claim refund. States ought to agree to this. States have to dec
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-20 October, 2016) The GSTC decided to hold its third meeting on 18-20 October, 2016 wherein following issues may be considered – Calculation of annual incremental tax revenue to decide projection for compensation for likely possible loss of revenue to the states in GST regime. Dual control over assessees Control over Service Tax assessees Rates of GST Exemptions and negative list It is expected that GST Council may finally decide on the above issues in its three days meeting in October, 2016. Treatment of Cesses While the proposed GST regime shall subsume certain taxes – both Central and of States, it is not certain as to what would be the fate of cesses such as Swachh Bharat Cess (SBC) and Krishi Kalyan Cess (KKC). While the Constitutional (101st Amendment Act) 2016 does not deal with treatment of cesses in the GST regime, GST Council is expected to decide the fate of cesses as to whether they will be subsumed in the GST rate itself or continue. According to present talks, there may
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hority. This will lead to troublesome to the dealers.How the provision is going to work ? Pls. Enlighten us sir. – Reply By Rakesh Chitkara – The Reply = Dual control by State & Central Tax authorities is a ticklish issue. My feeling is that CBEC will NOT be able to assert itself vis-a-vis State tax officials demand on overlapping areas, except large assesses. FinMin is in no mood to indulge or placate CBEC – Reply By Dr. Sanjiv Agarwal – The Reply = Dear Ganeshan ji / Chitkara ji,GST Council is meeting today for 3 days. Hopefully, there will be more clarity in this aspect to move forward. It may also become an issue of deadlock.Thanks & Regards,CA Neha Somani – Reply By Rakesh Chitkara – The Reply = My prediction on who will lose control or gain control of ST assessees below 1.50 crores – Centre or States : Considering that State Tax Official's demonstration at Jantar Mantar largely comprised of BJP ruled states and the same party is at Centre, this tacit support by BJP-go
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