GST introduction would require following key steps - Constitution amendment, agreement between Central and State Governments on compensation (CST, loss of revenue etc), and on GST design, release of draft GST legislation and consultation with all stake holders, roll out of technology platform and stream lining of tax administration

* The Government is expected to announce a definitive road map in the Budget

* GST roll out this year is unlikely because of factors in point 1. However. the Government can immediately initiate steps for passage of the Constitutional amendment bill and release the draft GST legislation

Service Tax

* Liquidation damages are monetary compensation for a loss to the service recipient/contractee of a works contract caused due to deficient provision of service or delay in completion of work. Clarification expected that these liquidation damages are penal in nature and hence not subject to service tax

* Interest rate on refunds should be increased from 6% to 10% . Interest should be allowed to the assessee on refund of pre-deposits where the appeals are decided in favour of the assessee

* Concept of partial reverse charge should be done away with as it involves liabilities on both the provider and recipient of service with operational difficulties

* Amendment of the provisions of service tax regulations to grant export benefits to cross-border transactions between head office and branch office

* The earlier exemption, which was available in relation to construction of residential complex having less than 12 residential units should be reinstated

* As per Place of Provision of Service Rules, where the location of the service provider and the recipient is in the taxable territory, the place of provision of services shall be the location of the service recipient. Location of the service provider/receiver has been defined to include the location where centralised registration has been taken. Accordingly, if a service recipient has centralised registration and includes a branch in Jammu & Kashmir, the location of the receipt of service will be the location where centrally registered premises is located. Expectation is that the rules should be appropriately amended so as to exclude J&K (Non-Taxable territory) from the ambit of s-Your data has been truncated.