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GST Council To Meet Today, May Discuss Tax Rate On Gold

Due to delay in achieving consensus with the stakeholders, the deadline of implementing GST from April 1 this year could not be met.
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GST Council To Meet Today, May Discuss Tax Rate On Gold
The GST (Goods and Services Tax) Council will meet on Saturday in Udaipur with an aim to approve the final draft supporting the centralised tax regime. The council, which has met 9 times since September 2016 with much rigour and negotiations, managed to resolve major issues in the interstate GST (IGST), central GST (CGST) and state GST (SGST) laws. The law ministry has vetted the language of the all the laws and the government would be presenting it to the state representatives to get official clearance from the stakeholders.

Here are 10 details about GST negotiations

1) While the parliament passed the GST Constitutional Bill, in August 2016, Centre had to struggle hard to negotiate the IGST and SGST laws with the state governments.

2) Due to delay in achieving consensus with the stakeholders, the deadline of implementing GST from April 1 this year could not be met.

3) Now, the government is keen to roll out the GST from July 1, 2017 but for that it will have to get three laws - CGST, IGST, and the state Compensation law passed in Parliament.

4) In its initial form, the government had expected the GST to have a uniform rate of tax across goods and services but eventually a 4-tier tax structure of 5 per cent, 12 per cent, 18 per cent and 28 per cent was agreed upon.

5) Even as the GST council has agreed for a 4-tier tax regime under GST, it is yet to agree upon the taxation regime for gold.

6)  A critical anti-profiteering clause in the draft GST law to ensure that the benefit of lower taxes gets shared with consumers is also likely to be finalised at the 10th meeting of GST Council on Saturday.

7)  A major contention in IGST negotiations was the taxation rights of the states in economic activities held in the oceans.

8)  Another reservation on the part of the states was Centre's demand to get the powers to tax small tax payers, who earn less than Rs 1.5 crore in annual revenue, for both goods and services.

9) Now that all these issues have been resolved, the government is looking at getting the final nod from the council on the language of the three draft laws that would govern the relation between the state and Centre under GST.

10) Another issue that the implementation of the GST regime faces is the setting up of the GST infrastructure in the country. The experts are of the view that industry would need at least 3 months after the passing of the final law to make their tax filing systems GST compliant.

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