With more than 50 percent of states ratifying the Goods and Services Tax Constitutional Amendment Bill ahead of schedule, Finance Minister Arun Jaitley today expressed confidence in the government's ability to stick to the “stiff”April 1, 2017 deadline for the implementation of the taxation reform.
“We are running against time. But I will like to give it a try,” the finance minister said at the the Economist's India Summit.
The central legislature will also have to pass two important bills in relation with the GST - the Central GST and the Integrated GST bills. I think these are among the important economic legislations, but more important along with these legislations, is I think if you ask me in terms of economic priorities even outside parliament, I would say that certainly implementation of GST is the top priority.Arun Jaitley, Finance Minister
April 1 Deadline: Key Challenges
The April 1 deadline can be a reality if the revenue neutral rate, dual control by states and centre, and sectoral and geographical exemptions are worked out, a senior finance ministry official said on the condition of anonymity.
Before the Parliament takes up the CGST and IGST legislations in the Winter Session, state finance ministers have to agree on a GST rate, tax slabs and exempted goods and services. The government is yet to finalise whether businesses that have turnover of more than Rs 1.50 crore will come under the purview of either states, centre, or both.
The Goods and Services Tax Constitutional Amendment Bill, which was stuck in the Upper House of the Parliament, was passed with a majority in the monsoon session which ended on August 12. Since then 17 states and union territories including opposition ruled Bihar and Delhi have ratified the bill. The bill is now awaiting President Pranab Mukherjee's approval.
The GST Council will be formed as soon as the President clears the bill, the finance ministry official cited above added. The GST rate will have to be approved by the GST Council, which comprises of the Union Finance Minister and representatives of all the 31 states and union territories.
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