GST Council – Meeting on 19/10/2016
GST Rate Slabs - Convergence Elusive
While there was great anticipation on announcement of GST Slab Rates by the GST Council, it is reported that there had been no consensus.
It is reported that the discussion happened on the source of funding the compensation of revenue loss to States, i.e whether centre would compensate from its share of GST kitty or by any other means. Shri Arun Jaitley stated that the GST Council had broadly converged on the consensus on this issue. He said that in the next meeting scheduled on on 3rd and 4th November the slab rates would be finalized after the modalities of raising resources for meeting compensation of revenue loss to States is decided.
It is reported that the centre had suggested 4 rate structure or may be 5 slabs, 4%, 6%, 12%, 18% and demerit rate of 26%. It is also reported that the centre had proposed 4% cess on demerit goods to fund the compensation of revenue loss to States. Services may also be fitted into three rate structure of 6%,12% and 18%.
Shri. Jaitley stated that once the slab rates are finalized, decision on fitting in the Goods in the slab rates would be taken and that the draft legislation would be taken in the GST Council meeting tentatively scheduled on 9th and 10th November.
It appears that like the present VAT, there would be multiple rates. This could lead to classification issues, which one had expected not to arise under GST.
While it may be a disappointment, that the rate structure is not finalized, it is to be understood that the decision on rate of tax has to be a considered decision so as to balance the revenue consideration and also inflationary impact on all of us, the consumers. It is good to hasten slowly.
Date : October 19, 2016
GST Council – Meeting on 18/10/2016
Compensation of revenue loss to States
Briefing the press after the meeting of the GST Council Shri. Arun Jaitley stated that the issue of compensation of revenue loss to States was discussed.
It is understood that the meaning of “revenue” for the purpose of computation of revenue loss was discussed. Shri. Arun Jaitley stated that the base year for computation of revenue loss would be financial year 2015-16 and that the tax revenue growth is assumed to 14% per annum. The input tax credit reversed under the State VAT Acts would form part of “revenue”.
It is reported that Five alternate rates of GST tax structure presented to GST council and that the GST rates it is expected to be finalized on 19/10/2016.
Date : October 18, 2016
GST Council – Meeting on 30/09/2016
Present Exemption moved to Refund Route
Briefing the press after the meeting of the GST Council
Shri. Arun Jaitley stated that there would be a levy of
tax under GST on units availing of tax incentives /
concessions at present. The respective State Governments
or the Central Government would compensate the units by
way of refund. So the Central Government / State
Government would have to frame the rules for conversion of the
exemptions to reimbursement / refund Route.
Service Tax - Division of authority
It is reported that there was a discussion on the
interpretation of the conclusion in the first meeting of
the GST council on handling of assessment of existing
service tax assessees.
Some States want to handle the assessments of service
tax assessees as well. Considering the difference of
opinion, it is reported that decision on this issue was
deferred to the next meeting.
Certain draft rules approved
GST Council approved the draft rules and formats
relating to Registration, Payment, Returns, Refund and
Invoices, Debit/ credit note.
next meeting of the GST Council is scheduled to be held
from 18th October to 20th October,
It is expected that the GST Council would deliberate on
Rates of tax, exemption and the draft of the three GST
Date : October 1, 2016
FAQs on GST compiled by CBEC
The CBEC has published compilation of FAQs on GST
covering 24 topics with over 500 questions. This is the
first version based on the Model GST Law which has been
released in the public domain
Click to download FAQs on GST compiled by CBEC
Date : September 22, 2016