BASIC CONCEPTS OF GST (PART- 11)
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 11-3-2016
Steps Involved in GST Introduction
Following steps are needed on political, administrative and technological fronts for smooth implementation of GST:
* Constitutional amendments (pending in Parliament (Rajya Sabha); Standing Committee Report submitted; draws opposition from Congress)
* Drafting of GST law (process started)
* Strong political commitment (looks a distant reality in present political set up).
* Arriving at common / general consensus on major issues including political agreement (efforts are on through Empowered Committee / negotiations )
* Setting up a high level committee for monitoring the project of GST (Empowered committee is in place).
* Preparing a blueprint/road map for GST (to be made public)
* Creating a conducive environment for GST (slow efforts)
* Centre-States coordination (efforts on, onus on Empowered Committee)
* Cons
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introduced in India from 1st of March on select commodities
1991
Chelliah Committee recommends VAT
1999
FM announces decision to introduce VAT in India.
Formation of Empowered Committee on VAT
2002
Task Force on Indirect Taxes report headed by Kelkar
CENVAT introduced on all commodities at central level
2003
VAT introduced in first Indian State of Haryana
2005
VAT in 24 States/UTs including Punjab, Chandigarh, HP, J&K and Delhi.
2006
VAT implemented in 5 more States including Rajasthan.
2007
FM announces GST introduction in India from April 01, 2010.
Parthasarathi Shome submits a study paper on GST.
Empowered Committee of State Finance Ministers constitutes the Joint Working Group.
VAT implemented in Tamil Nadu & Puducherry.
Central Sales Tax (CST) phase out starts, CST cut to 3%.
Joint Working Group set up for proposing GST roadmap and structure.
2008
VAT introduced in the last Indian State of UP from January 01, 2008.
EC finalises its views on a broad GST
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e for GST roll-out.
GST sub-committee in the EC proposes a revenue-neutral rate of 26.7%.
Alcohol to be kept outside the purview of GST.
All entry taxes proposed to be subsumed under GST, whether collected by States or local bodies.
Petroleum and petroleum products to be subsumed in GST, with nominal or zero-rated tax.
GST compensation to States pegged at around ₹ 11,000 crore.
Centre to provide three year compensation on the revenue loss incurred by States after GST roll-out.
December : GST Constitutional Amendment Bill moved in Lok Sabha
2015
06.05.2015
Lok Sabha passes GST Bill
12.05.2015
Bill on GST not passed by Rajya Sabha ; referred to Select Committee
17.06.2015
Committees Constituted to recommend tax rates and to monitor progress of IT preparedness / mechanism of GST / drafting of rules.
22.07.2015
Select Committee of Rajya Sabha tabled its report on GST Bill
29.07.2015
Union Cabinet approves Select Committee recommendations
11.10.2015
Discussion pape
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