“We don’t have the luxury of time to defer the implementation of GST“, Finance Minister Arun Jaitley said after the Council meeting on Sunday. In a letter to Finance Minister Arun Jaitley, Assocham said since the information technology network was not yet ready, taxpayers will find it hard to comply with the provisions of the new indirect tax regime.
India’s government insists it is pushing ahead with plans to launch the good and services tax (GST) at the beginning of next month, despite some speculation that the reform might be delayed. For August, the new deadline for GSTR-1 is September 20 instead of September 10. GST rates on lottery have been decided, the Finance Minister announced after a meeting of the GST Council at Vigyan Bhavan here.
Construction of flats, complex, buildings will attract a 12 per cent GST compared to about 12.5 per cent excise duty at present and Value-Added Tax of around 12.5-14.5 per cent levied by states.
Jaitley said the GST Council has cleared anti-profiteering and e-way bill rules.
“We, Assocham, applaud the effort being made by the government to implement GST at the earliest”.
Jaitley said the real estate builder will enjoy the benefit of input credit, which will be deducted from tax liability.
According to the statement issued today, the Customs Department said the Finance Ministry had ordered the instruction to be cancelled following wide media coverage of an extension of GST to include food items.
“It will have a sunset clause of two years”, Adhia said.
The GST Council will consider on June 30 the state’s other demands including a tax for ayurveda medicines on a par with modern medicines, an increase in taxes for cosmetics and a decrease in tax for bamboo products. It would forward the complaint to the Directorate of Safeguards (DGS) for investigation, which is likely to take about 2-3 months to complete the inquiry.
The Council deferred a decision on e-way bills due to lack of consensus, which means states which have an e-way bill structure in place can continue with it, while others are exempt.
“However, allowing continuation of existing system of different states for checking inter-state transactions may bring distortions in first phase of GST itself and as such it would have been much better if provision of E-way bill and HSN code is suspended for at least six months”, the lobby group said. Earlier, the council had fixed a tax of 28 per cent for rooms costing more than Rs 5,000 a night. The GST Council will meet again on 30th June on the eve of the launch.
The Council also decided on the Rs 50 lakh threshold for availing composition scheme by businesses in special category states.