sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« Budget Extravaganza »
 How Union Budget 2018 impacts individual taxpayers
  How Budget 2018 will be different due to GST
 This is how Budget 2018 announcements may help you save tax
 Here's why the government advanced the Budget date
 Will Budget 2018 Reduce Your Income Tax? 10 Expectations
 How Budget 2018 will be different due to GST
 Will Budget 2018 cut tax on switch from dividend to growth option in mutual funds?
 Startup eco-system looks forward to the budget for addressing tax dilemma
 High time to prioritise non-tax revenue in the Budget
 Govt may abolish dividend distribution tax in budget
 Budget making in the GST era: paradigm shift

Change in Constitution for GST unlikely before Budget
December, 15th 2009

In spite of the optimism shown by Asim Dasgupta, chairman of the empowered committee of state finance ministers, the much-anticipated goods and services tax (GST) is unlikely to be introduced on April 1, 2010. The process of Constitutional amendment to bring the new indirect tax legislation may take another five months.

It will take 5-6 months for the amendment and everything else to fall in place. Besides, we cannot start work on things like IT infrastructure as long as a final GST structure is not there, a highly-placed government official said.

The finance ministry is working on the Bill for Constitutional amendment, which is the first step in the process. The Bill is not ready to be tabled in the ongoing session of Parliament, which ends on December 21.

Even if the government tables the Bill in the Budget session in February, after the Cabinet approval, the exercise will not be over by the rollout deadline. It will first have to be examined by the select committee of Parliament and, if approved, it will require the approval of state legislatures.

The law ministry has conveyed to the finance ministry that the amendment would need to make 10-15 changes in various Articles.

The law ministry is trying to ensure that the amendment does not make changes in the basic structure of the Constitution which can be challenged in the court.

The Constitution provides for delineation of power to tax between the Centre and states. While the Centre is empowered to tax services and goods up to the production stage, states have the power to tax the sale of goods. States do not have the power to levy a tax on the supply of services, while the Centre does not have the power to levy tax on the sale of goods.

It is essential to have Constitutional amendments for empowering the Centre to levy tax on sale of goods and states for levy of service tax and tax on imports and other related issues.

As part of the exercise on Constitutional amendment, special attention would be given to the formulation of a mechanism to uphold the need for a harmonious structure for GST, along with the concern for power of the Centre and States in a federal structure, the empowered group said in its discussion paper released last month.

A joint working group was constituted on September 30, comprising officials of the Central and state governments, to prepare the draft legislation for the Constitutional amendment.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Article Management Solutions System Article Management Software S

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions