GST Bill is passed in Rajya Sabha on 03. 08.2016.
A panel under chief economic adviser Arvind Subramanian has recommended a revenue-neutral rate of 15-15.5%, with a standard rate of 17-18% be levied on most goods and all services.
But, there has been no agreement yet on rates of various goods and services, which remains a tricky issue. According to the Bill, passed in the Lok Sabha in May 2015, the rates were to be decided by a GST council headed by the central finance minister with state finance ministers as members.
Let us wait.
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Sir, I would like to represt below update on GST rate.
All states were of the view that the tax rates put forward by the chief economic adviser are not acceptable. There was no consensus on what should be the rate. It can be 18% or above that. That was the consensus,” said Kerala finance minister Thomas Isaac, adding that the states prefer to keep rates on items of mass consumption low. “We know that the effective rate on consumer products today is about 30%. It will be considerably brought down. At what level, we will decide later,” he said.
Sir, the number of registrations that is required to be taken under current indirect tax regime will be minimised in GST regime. But the number of return that will be required to be filed under GST would tremendously increase. The matching of transaction by purchaser with the seller and vise versa will require a dedicated task force in an organisation with number of location it is operating with. Thanks.
The key amendment carried out in the Bill during the course of its passage in the Rajya Sabha include:
- Deletion of 1% additional tax which had been earlier proposed on all inter-state supply of goods;
- Full compensation to the States for first five years towards the losses if any, incurred by the States due to implementation of GST.
- Establishing a mechanism for adjudicating any dispute between Centre and States or between the States, arising out of the recommendations of GST Council.
The Government may take up the Bill for Goods and Services Tax Law possibly in the winter session of the Parliament. Thanks.
Sir, the GST Bill is already passed by both the house. Now the bill is required to be ratified by States. I'm this regard three States has already passed it. Assam was the first to ratified followed by Bihar and today Jharkhand has ratified the GST Bill. Thanks.
The GST rate is discussed to be @22%. The Chief Economic Advisor has suggested for 18%. The rate across country has gst rate ranging from 7% to 21%. If 22% is chosen initially inflation is ought to come. Thanks.
The CBEC has set up a panel to formulate a roadmap under GST on area based exemptions.
As an alternative to exemptions, the companies may get the option to pay tax and claim refund thereafter. The will create cash flow issues as the the companies will first have to pay tax and then claim refund of it. Industry experts feel that industry needs assurance on benefits and ease of obtaining such benefits. (Source: From GSTupdates).
Sir, 11 States have announced their intend to ratify GST Bill. Already 3 States have ratified. FYI. Thanks.
The Bill has since been ratified by the Legislative Assemblies of Assam (12.08.2016), Bihar (13.08.2016), Jharkhand (17.08.2016), Himachal Pradesh (22.08.2016), Chhattisgarh (22.08.2016) and Gujarat (23.08.2016) and ratification by Delhi, Madhya Pradesh, Haryana, Goa, Maharashtra, Rajasthan etc are likely to follow suit.
Sir, Nagaland also ratified GST Bill.
Sir, 13 states have approved the GST Bill. These states include :
- Himachal Pradesh,
- Madhya Pradesh,
- Mizoram and
States that ratified GST Bill.
1. Assam (12.08.2016)
2. Bihar (16.08.2016)
3. Jharkhand (17.08.2016)
4. Himachal Pradesh (22.08.2016)
5. Chhattisgarh (22.08.2016)
6. Gujarat (23.08.2016)
7. Madhya Pradesh (24.08.2016)
8. Delhi (24.08.2016)
9. Nagaland (26.08.2016)
10. Maharashtra (29.08.2016)
11. Haryana (29.08.2016)
12. Telangana (30.08.2016)
13. Mizoram (30.08.2016)
14. Sikkim (30.08.2016)
15. Goa (31.08.2016)
16. Orissa (01.09 2016)
Small scale traders having an annual turnover up to ₹ 25 lakh are likely to be exempted from goods and services tax (GST). The Centre and states are likely to agree to this limit.
50% States have now ratified the Bill. Now the bill may move for Presidential assent.
Sh.Ganeshan Kalyani Ji,
Thanks for updating. You have saved the time of others. Pl. continue.