Jaitley turns down demands for deferring GST rollout

Source: The Hitavada      Date: 29 Jun 2017 09:03:02


 

NEW DELHI,

FINANCE Minister Arun Jaitley on Wednesday rejected demands for deferring the Goods and Services Tax (GST) rollout saying the Constitution does not give luxury to delay the nation’s biggest economic reform by six months.
Not ruling out a few initial glitches when more than a dozen state and central taxes are abolished and barriers between 29 states done away with, Jaitley said the system is fully geared up and will eventually smoothen itself out.


While there have been sporadic protests in some cities against implementing the GST without giving businesses more time to prepare, Trinamool Congress has decided not to attend the gala event planned in Central Hall of Parliament on June 30 midnight to usher in the mega tax reform.


The Constitutional amendment approved by Parliament in September last year gives time only till mid-September to replace the existing indirect tax structure by the GST. In absence of the GST, there will be a constitutional crisis as no tax can be levied on goods and services.


Finance Ministry starts notifying provisions of GST acts, amends rules: WITH two days left for roll out of GST, the Finance Ministry has started notifying various provisions of law relating to interest calculation, input tax credit and valuation. Provisions in the Central GST Act (CGST), Integrated GST (IGST) Act and Union Territory GST
Act and rules under them are being notified.


Also appeals and revisions, transitional provisions, anti-Profiteering and e-way rules have been notified which shall come into effect from July 1.


As per the notification, interest at 18 per cent is to be paid for delayed payment of tax, 24 per cent in case of excess claim of input credit or undue/excess reduction in output liability. Besides, interest at the rate of 6 per cent would accrue in case refund is withheld. With regard to IGST, provision prescribing refund of 50 per cent of IGST on supplies to defence run CSD canteen has been notified. Also notified is those provisions relating to supplies of goods in respect of which no refund of unutilised input tax credit shall be allowed.


The Ministry has also notified the composition levy and has barred manufacturers of ice cream, pan masala and tobacco from paying tax under the scheme. Under the composition scheme where the sales of businesses does not exceed Rs 75 lakh, manufacturers will have to pay 1 per cent of turnover as GST, traders 2.5 per cent and 0.5 per cent of turnover in state in case of other suppliers.