Goods and Services Tax – GST – By: – sandeep saini – Dated:- 2-9-2016 Last Replied Date:- 3-9-2016 – After a much awaited time period, now its matter of time, when GST is going to be a reality in India. The seriousness of the Government to implement GST, clearly appears from the passage of 122nd Constitutional Amendment Bill ( Constitutional Amendment Bill ) by both the houses of parliament i.e. Rajya Sabha as well as Lok Sabha. On the other hand, the States are also equally eager to implement GST as early as possible, and after the passage of Constitutional Amendment Bill, States are ratifying the same by holding the special sessions of their State legislative assemblies, and till now Assam, Bihar, Jharkhand, Himachal Pradesh, Chattisgarh has already ratified the Constitutional Amendment Bill. Therefore, we should not hessitate to appreciate the efforts of both Central Government and State Governments to implement the GST from April 1, 2017. However, once the Constitutional Amendment
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tes i.e. the Finance Minister of the Centre and the Finance Ministers of the States, so it will not be easy for the Centre or the States to ignore its recommendations without any strong reason. Composition of GST Council: The GST Council shall consists of following members: Union Finance minister, who will be Chairperson of GST Council; Union minister of State incharge of Revenue or Finance; The minister incharge of Finance or Taxation or any other minister nominated by each State Government and they will choose one among themselves to be the vice chairperson of the council for a particular period. Subject matters on which recommendations will be made by GST Council: The GST Council shall make the recommendations to the Union and the States on the following subjects: GST rates, cesses and surcharges levied by the Union, States and Local bodies which may be subsumed in the GST; Goods and Services exempted from GST; Model GST Law which is put on public domain on June 14, 2016, will be an
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taken together shall have a weightage of 2/3rd of total votes cast. Approval of any decision by the GST Council: In GST Council, every decision shall be taken, when it is approved by at least 75% of the weighted votes of members present and voting. From the above voting pattern, it appears that it will not be possible for the States to take any decision against the will of Centre, since the Centre has 33% votes and to get any decision passed, 75% votes are required, which is possible only when centre supports that particular decision. In the similar way Centre cannot take any decision which is opposed by States. Challenges before GST Council: The GST Council has to face challenges while taking the given below decisions: Computation of compensation in lieu of revenue loss to the States, since losses are going to be notional in nature, so it becomes important to laid down a transparent and detailed method to calculate the compensation, which is to be provided to States for initial five y
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