Periodic updates on finalisation of GST related legislations (January 2017 onwards)

GST Council Meeting Update-January, 2017
GST Council meeting was held on 16 January, 2017 wherein deadlock over the contentious issue of dual control has finally been resolved. Finance Minister has formally announced that the government is targeting to implement GST from 1 July 2017.
Some of the other Key issues on which consensus was reached during the meeting are as under:
With respect to CGST/ SGST:
  • 90% of the assessees below turnover of INR 1.5 Crores would be administered by the States and the balance 10% would be administered by the Centre;
  • All assesses having turnover above INR 1.5 Crores would be assessed in the ratio of 50:50 between centre and state;
  • It was clarified that no assessee would be controlled by both the Authorities (Centre and State);
  • In case of any conflict in assessments between the States w.r.t. place of supply, Centre would have the power to intervene and decide.
With respect to IGST:
  • Power to levy and collect IGST will remain with Centre, but by special provision in the law, States will also be cross empowered.
Considering the above developments, the government is confident that July 1, 2017 as the roll-out date for GST seems very much achievable. Council would meet again on 18th February, 2017 to finalize the GST law.
GST Council Meeting Update-February, 2017
GST Council meeting was held on 18th February, 2017 wherein Draft Compensation Bill was finalised and Finance Minister has formally announced that the government is targeting to implement GST from 1 July, 2017.
GST Council also cleared the final drafting of the anti-profiteering clause to ensure that benefit of lower taxes gets shared with the consumers.
GST Council will meet again on March 4 and 5 to finalize the GST laws. Post finalization, Central GST Act (CGST) and Integrated GST Act (IGST) would be tabled before the Parliament in the second half of the Budget session which begins on March 9, 2017.

GST Council Meeting Update-March, 2017

GST Council meeting was held on 4th March, 2017, wherein CGST & IGST Bill was approved. In the Council meeting held on 16th March, 2017, council approved SGST & UTGST Bill.
On 20th March, 2017 Union Cabinet has approved the four draft laws on GST i.e. Central GST Law (‘CGST Law’), Integrated GST Law (‘IGST Law’), Union Territories GST Law (‘UTGST Law’) and Compensation Law.
As next step, the Central laws (i.e. CGST Law, IGST Law, UTGST Law and Compensation Law) are expected to be tabled in the Parliament as Money Bills in the on-going Budget session and State GST laws would be presented before the respective State legislatures for approval.
On March 29, 2017, Lok Sabha passed the much-awaited Central Goods and Services Tax (CGST) Bill, Integrated GST Bill, Compensation GST Bill and Union Territory GST Bill.
GST Council will meet again on March 31, 2017 to take up Rules related to Composition, Input Tax Credit, Valuation, Transition provision and any changes to rules already cleared.
GST Council Meeting Update-31 March, 2017
GST Council meeting was held on 31st March, 2017, wherein 5 set of Draft Rules dealing with Registration, Invoice, Payment, Return & Refund, that were originally issued, have been amended to bring them in conformity with the provision of the GST Law.
Further, four new Draft Rules dealing with GST Input Tax Credit, Valuation, Transitional Provisions and the Compensation scheme, have been approved and are available in public domain.
GST Council will meet again on May 18-19, 2017 to take up final approval of new draft rules and rate structure in relation to individual commodity.
Progress towards GST-April, 2017
On 13th April, 2017, the Honourable President of India has given assent to four legislations on Goods and Service Tax, the legislations were The Central GST Act, 2017, the Integrated Goods and Service Tax Act, 2017, The Union Territory Goods and Service Tax Act, 2017, The GST (Compensation to States) Act, 2017. These bills were passed in Rajya Sabha on 6th April, 2017 and Lok Sabha on 29th March, 2017.
Further, five more set of draft rules deals with Assessment & Adjudication, E-Way Bill, Accounts and Records, Advance Ruling and Appeal & Revision are available in public domain.
Ten State assemblies including Telangana, Bihar, Rajasthan, Jharkhand, Chhattisgarh, Uttrakhand, Madhya Pradesh, Haryana, Gujarat & Goa passed the State Goods and Service Tax Bill, 2017 till date i.e. May 10, 2017.
GST Council meeting update-May, 2017

GST Council meeting was held on 18th & 19th May and 3rd June, 2017, wherein 9 out of 14 available draft rules namely, Composition Rules, Invoice, Credit and Debit Notes Rules, Input Tax Credit Rules, Payment of Tax Rules, Refund Rules, Registration Rules, Return Rules and Transition Rules were approved and put up to public domain.
GST Council also finalised the tax rate structure of goods and services. The goods and services will fall under different rates such as Nil, 5%, 12%, 18% & 28%. The Council has kept a large number of goods and services in the 18% slab and has categorized 1211 items of goods under various tax rates and the same has been made available on public domain.
Council has also issued list of 83 services which would be exempted under GST, services which would be liable to GST under reverse charge mechanism. Further, the council has proposed new scheme for classification of service. Also, the Council has clarified that two key social elements healthcare and education would be exempt from any tax under the GST.
Progress towards GST
Until June 4, 2017, all the States and Union Territories (except 7 States) have passed the State Goods and Services Tax Bill, 2017 or UT Goods & Service Tax Bill, 2017 during the special session of the Legislative Assembly. Accordingly, list of states not passed States Goods & Services Tax Bill are as under:-
  • West Bengal (Kolkata)
  • Meghalaya (Shillong)
  • Punjab (Chandigarh)
  • Tamil Nadu (Chennai)
  • Karnataka (Bangalore)
  • Kerala (Thiruvananthapuram)
  • Jammu & Kashmir


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