Amid concerns of missing the GST rollout deadline of April 1, the Government today came out with a report card detailing the efforts being made to reach a consensus on support legislations for timely implementation of the new indirect tax regime.
“All efforts are being made to meet the necessary deadlines to ensure that GST is rolled out by April 1, 2017,” said the Finance Ministry’s report card on GST implementation.
“At present, agenda items pertaining to GST related draft laws and provisions for cross empowerment to ensure single interface under GST are under consideration of the GST Council.
“99 Sections the Model GST Law have already been considered by the Council and remaining Sections will be discussed in the next meeting of the Council scheduled forDecember 22-23, 2016,” it said.
The last GST Council meeting on December 11 could not find time to discuss the all important issue of cross-empowerment.
The GST Council in its first meeting had decided that GST would be rolled-out by April 1, 2017, it said. Since notification of the GST Council on September 12, 2016, six meetings have been held.
During these meetings, number of important decisions have been taken paving way for timely rollout of GST, it said, adding the threshold limit for exemption from levy of GST has been fixed at Rs 20 lakh for normal states and Rs 10 lakh for Special Category States.
The threshold for availing the Composition scheme has been fixed at Rs 50 lakh while service providers have been kept out of the composition scheme.
To compensate states for 5 years for loss of revenue due to implementation of GST, the base year for the revenue of the state has been fixed at 2015-16 and a fixed growth rate of 14 per cent would be applied to it.
The Council has also approved the Draft GST Rules on registration, payment, return, refund and invoice, debit and credit notes.
All entities exempted from payment of indirect tax under any existing tax incentive scheme would pay tax in the GST regime and the decision to continue with any incentive scheme shall be with the concerned state or Central Government.
In case any State or Central government decides to continue any existing exemption/incentive scheme, it will be administered by way of a reimbursement mechanism.
The Council fixed bands of rates of goods under GST at 5, 12, 18 and 28 per cent. In addition, there would be a category of exempt goods.
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