Industry is prepared for GST rollout from July 1, says CII

Virginia Carter
June 19, 2017

"We don't have the luxury of time to defer the implementation of GST", Finance Minister Arun Jaitley said after the Council meeting on Sunday.

Replying on this issue, Finance Minister Arun Jaitley said "this is wrong" and real estate developers should pass on the benefits of input tax credit to buyers or else they would have to face action under anti-profiteering rules.

With the ambitious Goods and Services Tax (GST) regime set to be launched on 1 July, the Centre has roped in Bollywood megastar Amitabh Bachchan for its promotion. For August, the new deadline for GSTR-1 will be September 20, instead of September 10. GST rates on lottery have been decided, the Finance Minister announced after a meeting of the GST Council at Vigyan Bhavan here. For only hotels with daily tariffs above Rs 7,500, GST rate at 28 per cent will apply. This would mean that states will continue to deal with way bills differently while the GST law would be the same.

The Council cleared six draft rules including those against profiteering.

A slight relaxation of two months has been given to the businesses to prevent lack of preparedness for the new tax regime.

More than 6.5 million businesses have already signed up for the GST, Jaitley said, more than four-fifths of those already registered to pay India's old business taxes.

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The GST is scheduled to be rolled out from July 1 and tax rates have already been fixed for nearly all goods and services. Citing the provision of E-way bill which is a mandatory provision in the new structure he said, "Now we will have to put the details of out transactions online".

"Industry is ready for the landmark tax reform of GST, which is expected to bring significant gains for economic growth, employment and exports", said Chandrajit Banerjee, director general, Confederation of Indian Industry. "The GST Council has categorically decided that it would be implemented from July 1".

The authority would have a sunset date of two years.

The biggest indirect tax reform since independence, the GST is expected to give a leg up to more than 2 per cent of India's GDP and create jobs in nearly all the sectors, according to analysts.

"Till a consolidated rule is framed by consensus, the transient rule will continue", Jaitley said on the e-way bill issue. Earlier, the composition limit for all states was increased from Rs 50 lakh to Rs 75 lakh. He added that it was decided in the meeting to have further deliberations on E-way Bill as Council had two opinions.

But the new requirements have also led to the emergence of boutique players offering to help firms connect to the new GST Network, the vast IT back-end system that will crunch up to five billion invoices a month.

Other reports by BadHub

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