Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: VAT Audit :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: TDS :: ACCOUNTING STANDARDS :: VAT RATES
« Service Tax »
 Benefits of GST to home buyers In the next lifetime
 GST: Jaitley says yes to cess, no to additional tax for compensating states
 GST to enhance ease of doing business, says Assocham
 Govt sources say cess is a better option than high tax rate
 Goods and Services Tax: There should not be more than three grades of rates, says Chidambaram
 Chidambaram says there cannot be multiple tax slabs in GST
 Service tax officials transferred for favouring realtor
 GST, a challenge and opportunity for accounting professionals’
 Service Tax On Hotels And Restaurants – Recent Delhi High Court Judgment
 GST Council discusses 4-tier tax rate, cess on demerit goods
 Why you shouldn’t miss these three simple tax saving options beyond Section 80C

GST rollout may not take-off before FY17
July, 08th 2014

The proposed Goods and Services Tax (GST) might be introduced only from 2016-17, even as the Centre has agreed to sort out states' concerns over compensation for a cut in Central Sales Tax (CST), a long-pending issue obstructing progress in indirect tax reforms.

"The agreement resolves a major hurdle but does not mean GST will come into effect from this October or November. It will take time," said Prashant Deshpande, partner, Deloitte India.

At a meeting with state counterparts last week, Union Finance Minister Arun Jaitley had said, "Fixing the compensation issue is critical to roll out GST."

CST, a tax on inter-state movement of goods, was cut from four per cent to two per cent, in phases. In late 2012, states had reached an understanding with the Centre for full compensation for 2010-11, 75 per cent for 2011-12 and 50 per cent for 2012-13. This would require the Centre to shell out Rs 34,000 crore.

However, in Budget 2013-14, then finance minister P Chidambaram provided only Rs 9,000 crore, of which only Rs 1,900 crore was released. States complained they hadn't been given compensation since 2011-12.

CST is one of the problems in the way of GST. Issues concerning the Constitution Amendment Bill, an enabling provision to allow the Centre to tax goods beyond manufacturing and states to impose services tax, are also taking time to resolve.

"I think introduction of GST might come from April 2016. It is unlikely from next year," said Pratik Jain, partner, indirect tax, KPMG in India.

States also want the Centre to give a binding commitment in the Constitution Amendment Bill for compensating their revenue loses due to GST for three years. The Centre has agreed to the compensation but states want the Bill to say so. Then comes the issue of keeping petroleum out of GST. The Centre wanted this to be mentioned in the Bill but not states.

States also wanted a portion of the central pool of tax on inter-state movement of goods and services. They also demanded that entry tax not be subsumed in GST, as it is a major source of revenue for local bodies.

Even if agreement is reached on rolling out a distorted GST, without petroleum and without subsuming entry tax, passage of the Constitution amendment will require much party coordination by the government. The ruling coalition is short of the two-thirds majority needed for the amendment in the Lok Sabha. In the Rajya Sabha, the ruling alliance has 62 seats but needs 160 to pass the Bill. Then, half the state Assemblies need to okay the Bill; the central government's supporters rule in only seven of 29 states.

The Centre will also have to enact a model GST law. Then, states will frame their own Bills and get these passed in their respective Assemblies. These then will have to be sent to the Centre for the President's assent.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Integrated Software Solutions Integrated Software Development Integrated Software Services Integrated Software Solutions India Integrated Softw

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