Please note that those who are registered under State VAT Act and are also registered under Central Excise or Service Tax, the migration would be using the provisional ID provided by State VAT Authorities.
The provisional ID provided in https://www.aces.gov.in/ by CBEC is relevant only to assessees who are presently registered under Central Excise or Service Tax and not under the State VAT Act.
The last date is 31st January,2017
No Decision yet on Dual Control
For those of you who were expecting decisions from the GST Council facilitating early implementation of GST, there is disappointment in that the impasse on Dual Control besides other issues like Jurisdiction over Territorial Waters, Split between SGST and CGST of the agreed rate structure continues.
Administration of IGST is also an issue that is being deliberated upon.
The GST Council meets next on 16th January, 2017 to decide on the issues and if there is consensus, the Central Legislations CGST, IGST and GST Compensation Law can be taken up in the Budget Session of the Parliament.
The divergence of views and constructive deliberation for convergence augurs well for fiscal federalism though the implementation of GST gets delayed.
Image courtesy: riseperformancegroup.com
Date : January
Migration of Excise /Service Tax Assessees
GSTN has announced the revised Enrolment Schedule for existing Service Tax and Central Excise Assessees who are not registered under the State VAT Act. The revised schedule is
GST Council – Meeting on 03/01/2017
GST – Jurisdiction over Territorial Waters discussed
It is learnt from press reports that Certain Central Ministries and representatives from service sector - Software, Telecom, Banking and Insurance Railways – made presentations on their concerns, to the GST Council. Their main concern is that they require centralized registration, as in present service tax legislation, since they render services across India.
It is also reported that the demand for States for jurisdiction over Territorial Waters and certain issues in IGST Act was also discussed. Certain States charge State Taxes ( VAT/Sales Tax) on transactions within 12 nautical miles from the coast line. The IGST law vests this right with the centre. Since this is a Constitutional issue it is learnt that legal opinion would be taken on this issue. The issue is the definition of “State” and how far into the Territorial Waters its jurisdiction extends.
Briefing the press, Sri Amit Mitra elaborated on the issues in the Compensation for revenue loss to States already agreed upon and that post demonetization the quantum of compensation would be higher than projected earlier. He said that the Central Government will have to find ways and means of meeting the commitment to compensate revenue loss for the first 5 years of implementation of GST.
The issue of Dual Control and discussion on the probable roll out date may take place on 4th January, 2017.
The three legislations are yet to be finally approved by the GST Council. What has to follow is the decision on fitment of Goods and Services in the agreed rate of tax structure and the approval of the Rules.
January 3, 2017.
GST Council – Meeting on 23/12/2016
Some progress on draft legislation
Briefing the press after the meeting of the GST Council on 23/12/2016 Shri. Arun Jaitley stated that the Primary draft of CGST and SGST law and the five schedules were cleared except provisions in the draft law relating to dual control and cross empowerment.
Since wordings/ language of few other provisions require redrafting he mentioned that the revised draft would be circulated to the States for finalizing in the next meeting.
He also stated that the GST Council cleared basic draft of the GST Compensation Law and that the language of the provision relating to source of compensation fund is to be redrafted for discussion in the next meeting and that it was agreed that compensation would be disbursed once in two months.
The GST Council is meeting again on 3rd and 4th January 2017 to discuss draft IGST legislation and the contentious issue of Dual Control / cross empowerment. One issue Shri Jaitley mentioned is the definition of “Territory of the State”, which he stated is a matter of Constitutional interpretation. One issue for discussion is whether powers to administer IGST can be shared with the States or should it be by the Central Government.
The issue of approval of the Rate of Tax Schedules remains and maybe it would be taken up by the GST Council after all legislative approvals, issue of compensation and cross empowerment are decided.
West Bengal Finance Minister and Chairman of the Empowered Committee of State Finance Ministers stated that in the current Financial Year the States would face huge revenue shortfall and that the estimates of revenue loss to States could be around 70,000 to 80,000 crores. It appears that the States would want a relook on the quantum of compensation in the wake of the demonetization.
Well, there has been considerable progress with each meeting of the GST Council and in this meeting many technical and procedural issues have been cleared.
There is definitely progress towards early implementation and the GST Council is hastening slowly.
December 23, 2016
GST Council – Meeting on 22/12/2016
In the GST Council meeting held on 22/12/2016 it is reported that the provisions of the draft CGST legislation was discussed.
The Annual General Meeting of the Empowered Committee of State Finance Ministers is being held after the conclusion of the GST Council meeting.
It is expected that the issue of Cross Empowerment / Dual Control of Central and State Administrators would be discussed in the meeting of the Empowered Committee.
December 22, 2016
GST – Duel on dual control
With the GST Council set to meet on 22nd and 23rd December, 2016 to discuss on the issue of cross empowerment / dual control over administration of assessees besides consideration of the draft legislation, our editor Sri. S. Sridharan has discussed his views on this issue.
He opines that in the interest of efficiency Audit of Assessees is ideally by a team comprising State and Central Administrators.
Click to read the article titled Duel on dual control
December 20, 2016
GST Council – Meeting on 11/12/2016
GST – April 1,2017 Rollout Improbable
The GST Council met on 11th December, 2016 to continue the deliberation on the draft legislations and the issue of dual control.
Briefing the Press, Sri Arun Jaitley stated that 99 sections of the draft CGST/SGST legislation was discussed and that few provisions require redrafting and few provisions relating to issue of control over administration of assessees were deferred pending decision on the issue of dual control.
The next meeting of the GST Council is scheduled on 22nd and 23rd December when the remaining provisions of the draft CGST/SGST legislation would be discussed. It is expected that the draft IGST legislation and CST Compensation legislation would be discussed besides the contentious issue of dual control.
It appears from press reports that since IGST Act is to be administered by the Central Government, the issue of dual control would centre around this aspect.
While Sri Jaitley stated that the Government stands by the scheduled date of implementation of April 1,2017, it is apparent that it is almost impossible to meet this deadline.
With the winter session of the Parliament concluding on 16th December, 2016 the immediate probable timeline for approval of the Central Legislations can be only in January 2017 when the Budget Session of the Parliament would commence.
Considering that the States have also to pass the SGST legislation, it appears that 1st September 2017 is the probable date for rollout of GST. The constitutionally mandated deadline is 16th September, 2017.
In our view, delay is not a matter concern as it provides sufficient time to trade and industry to understand the nuances of GST and prepare effectively.
Let us hope that the GST Council decides all contentious issues early.
December 11, 2016