Goods and Service Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 17-8-2010 Last Replied Date:- 30-12-1899 – INTRODUCTION: The Central Government has fixed the target to implement GST by 1st April, 2010. Even though the Finance Ministry thought that the roll out may be taken beyond the targeted day it is still in the hope of implementing by the fixed date. The following are the challenges are to be faced: * Constitutional provisions; * Tax assignments vis-à-vis revenue sharing; * Overall level of rates of tax; * Type of rate structures; * Development of a common market and * Successful operation of tax information exchange system as reported by Dr. Shome. CONSENSUS: At present consensus has been emerged on the proposed goods and service tax structure between the Central Government and the State Government- * To adopt a dual rate structure – a lower rate and a standard rate for goods at the inception of GST; * To have a common list of exemptions for both Central GST and State GS
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
7; 50,000 crore to compensate the states eventuality of any dip in their share of revenues in 2013, ₹ 40,000 crore in 2014 and ₹ 30,000 crore in 2015. This they have done out of the confidence that revenues of both the States and the Centre will not be impacted. PETROLEUM UNDER GST: On 04.08.2010 the Hon'ble Finance Minister announced in the Lok Sabha that petroleum products should come under the GST net. For this decision the Finance Minister justified as that he felt that the variation in petroleum product prices across the country could be taken care of if the Centre and the States bring petroleum products within GST and this will be the win-win game. He further added that GST can address the problems of the fluctuating price at least domestically. This is the decision against the consent given by the Centre and the State to keep petroleum product out of the GST net. GST COUNCIL: The Centre will create a GST council headed by the Finance Minister. The Council will ha
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ill be replaced by one GST. CONSTITUITIONAL AMENDMENT: If GST is to be introduced with effect from 1st April, 2010 the constitutional amendment should be introduced in the Parliament in this session. The Constitutional amendment bill is to be examined by the Standing Committee and ratified by 15 states. There may be four options in the Constitutional amendment: * I option – allowing centre and states to levy and collect GST via entries in the Union and State lists; * II option – to implement GST by creating a fourth list called simultaneous list; * III Option – to empower Union and States to levy GST notwithstanding constitution; * IV Option – centre and states to enter into an agreement by amending Article 278(A) to implement GST. The formation of GST council and veto power will be form part of the constitutional amendment. The states are not satisfied with this. This is for the time since the Constitution was enacted that a tax base is proposed to be shared between the centre and sta
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =