Key takeaways of 10th GST Council meeting – GST Compensation Bill gets nod; IGST, CGST and SGST Laws will be taken up in next meeting on March 4-5
By: – Bimal jain
Goods and Services Tax – GST
Dated:- 22-2-2017
Key takeaways of 10th GST Council meeting:
GST Compensation Bill gets nod; IGST, CGST and SGST Laws will be taken up in next meeting on March 4-5
GST Compensation Bill gets the formal nod
Prospects of Goods and Services Tax (“GST”) becoming a reality from July 1, 2017, brightened further with the GST Council clearing the legally vetted draft of the GST Compensation Bill, in its 10th meeting, held on February 18, 2017 at Udaipur. The GST Compensation Bill seeks to stipulate the manner in which States will be compensated in the event of a loss arising in the first five years, due to the implementation of GST.
“The GST compensation law, that if a state has a loss, then for the first five years they will be compensated, the legally vetted draft has been formally
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and issues related to the definition of agriculture.
“These issues came up during the time of legal vetting of the draft laws, and the legal committee has received its clarifications from the Council….The legal committee will incorporate these changes and on March 4-5, the GST Council will meet again in Delhi and approve these laws.”, Mr. Jaitley said.
Fitment of items under GST rate slabs to be done after passage of laws
The decision on categorisation of goods in tax slabs (5%/12%/18%/28% and 28% with Cess) is not part of the law and will be worked out by the GST Council after the enabling laws are passed. Mr. Jaitley said that they would require one more major meeting of the Council to give its approval to the specific items in each of the slabs.
No discussion on anti-profiteering
Mr. Jaitley said that the issue of anti-profiteering did not come up for discussion during the meeting.
No additional powers to CAG
The Finance Minister added that the GST Council has decided
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16, 2017, had recorded that the States have been given the concession to change the formula over and above the agreed upon 90:10 division of tax assessees below the annual turnover threshold of ₹ 1.5 crore between States and Centre, respectively, and an equal division of assessees for a turnover of above ₹ 1.5 crore, after consultation with the Centre. Also, it had said that the GST Council had approved equal division of new registrants.
Our Comments:
Indeed, the approval to the Draft Compensation Bill, is a positive development, on way to GST implementation, as it was one of the contentious issues. Another good signal was that the political differences over demonetisation that hampered negotiations seem out of the way. All eyes will now be on next meeting of the GST Council on March 4-5 to see formal approval to the Draft Laws. Central laws would then be put up before the Parliament in the second leg of the Budget session, starting on March 9, 2017. Focus shall also rem
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Reply By JAYARAMAN RAMAMURTHY as =
thanks. i have been reading the updated posted by you on every developments. pl continue to do it. it is very much interesting and knowledgeable.
thanks
jrm
Dated: 23-2-2017
Reply By Ganeshan Kalyani as =
Nice information. The main expectation amongst other is the tax rate on various goods and services. The same is said that it will be prepared after the GST law is finalised.
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