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GST Rollout on 1 July – GST Implementation

GST Rollout on 1 July – GST Implementation

GST Rollout on 1 July

GST Rollout on 1 July : The GST Council in its 9th Meeting held on 16 January 2017 took note of the work to be completed for the rollout of GST and after deliberations, agreed to extend the date for rollout of GST from 1st April 2017 to 1st July 2017. Steps taken to ensure rollout of GST by 1st July 2017 include approval of the Draft GST Compensation Law by the GST Council in its 10th Meeting on 18 February 2017 held in Udaipur, Rajasthan. Subsequently, the Draft CGST Law and Draft IGST Law were approved in the 11th Council Meeting held on 4 March 2017 at New Delhi. The issues of dual control and cross empowerment were resolved in the 9th Meeting of the GST Council held on 16 January 2017 in which a broad agreement was reached on the issue of cross-empowerment to achieve single interface of taxpayer with the tax administration in the GST regime.

GST Rollout on 1 July

All the decisions taken by the GST Council so far have been based on consensus among the Centre and the States.

At the Central level, the following taxes are being subsumed in GST:

• Central Excise Duty,

• Additional Excise Duty,

• Service Tax,

• Additional Customs Duty commonly known as Countervailing Duty, and

• Special Additional Duty of Customs.

• Cesses and surcharges (Except Clean Energy Cess)

At the State level, the following taxes are being subsumed in GST:

• State Value Added Tax/Sales Tax,

• Central Sales Tax (levied by the Centre and collected by the States),

• Entertainment Tax (other than the tax levied by the local bodies),

• Octroi and Entry tax,

• Purchase Tax,

• Luxury tax, and

• Taxes on lottery, betting and gambling.

• State cesses and surcharges in so far as they relate to supply of goods and services.

GST Rollout on 1 July

GST will simplify and harmonise the indirect tax regime in the country. It is expected to reduce cost of production, thereby making the Indian trade industry more competitive, domestically as well as internationally. It is also expected that introduction of GST will foster a common or seamless Indian market and contribute significantly to the growth of the economy. Further, GST will broaden the tax base, and result in better tax compliance due to robust IT infrastructure.

GST Council is presently deliberating on various issues entrusted to it. All the decisions taken by the Council so far have been based on consensus. GST is going to be implemented soon in the country, therefore, simultaneous and concert efforts are also being made by the government in the form of IT readiness, rigorous consultations, workshops and training sessions for the industry and traders, and all other stake holders involved etc.

GST Rollout on 1 July

India will turn into one market at the stroke of mid-night between June 30 and July 1, with the rollout of the unified GST along with liberal tax filings rules for first two months to tide over any teething issues.

Rejecting demands for deferment of the biggest tax reform since Independence, Finance Minister Arun Jaitley assured the nation that the IT network backbone has been adequately tested and systems are in place for implementation of the goods and services tax.

The implementation of the Goods and Services Tax (GST) in India was not an overnight thought. The introduction of the tax reform has demanded both time and patience and is expected to significantly affect the Indian economy. The seeds of GST in India was first sown in the year 2000 by Atal Bihari Vajpayee, who was the then Prime Minister of the nation.

A step further in 2005, the then finance minister P. Chidambaram, in his parliament budget session, announced that there was a serious requirement of tax reforms in India in the area of indirect taxation. Next in 2010, the then finance minister, Pranab Mukherjee, in his budget session addressed to the nation that the GST will be introduced in April 2011.

In the budget session of the year 2011, the 115th constitutional amendment bill was introduced in the Lok Sabha for levying the GST on all goods and services, other than some specified goods which were to be kept outside the GST boundary for the benefit of the general public. Ultimately, in 2014, the GST bill was passed in Lok Sabha as the 122ndconstitution bill. And in 2016, the bill was passed in the Rajya Sabha as well.

The GST Rollout on 1 July has been deferred from its initially intimidated date of April 1, 2017. The delay has been attributed to the hefty issue of dual control, which has clogged the way. The government is now willing to implement the significant taxation reform from July 1, 2017, which is only three months away from the previously speculated timeline.

GST Rollout on 1 July

According to Economic Times, this has implications for the Budget, which was not expected to include targets for central excise and service tax. These taxes were supposed to be subsumed within the GST, which the Centre was hoping would roll out on the first day of the new financial year.

While the new dates will delay the GST Rollout on 1 July, they are within the mandatory deadline of September—after which the central and state governments will lose powers to levy any indirect taxes other than the GST. However, it can be implemented anytime even though its implementation from the beginning of the fiscal year would have been easier.

GST Rollout on 1 July

The Centre and States have agreed to share the entire taxation base for evaluation with a horizontal division. The formula which will apply for both goods procedures and service providers. States will have the power to assess 90% of all assesses with a GST turnover of Rs. 1.5 crore or less. The rest will be with the Centre. Assesses with a GST turnover of over Rs. 1.5 crore will be assessed in a 50:50 ratio by the Centre and States. Except for special provisions, only the Centre will levy and collect Integrated GST (IGST), wherein the States will also be cross-empowered. In the combative issue of place of supply in IGST for States, the assessment will be done by the Centre.

In the course of the meeting, the Prime Minister specifically reviewed aspects of implementation such as IT readiness, HR readiness, training and sensitisation of officers, query handling mechanism, and monitoring.

Modi was informed that GST systems such as IT infrastructure, training of officials, integration with banks, and enrolment of existing taxpayers will be in readiness well in time for the July 1 implementation date.

GST Rollout on 1 July

The GST Network (GSTN) made a detailed presentation at Saturday’s meeting on their IT preparedness for implementation from July 1.

With the July 1 rollout, the Bill will be taken up by the Cabinet for its approval and will be introduced in the Lok Sabha for passage in the current session itself.

Meanwhile, all states will have to pass the state GST laws for the Bill to become law.

GST will be a comprehensive indirect tax on consumption of goods and services throughout India, to replace taxes levied by the central and state governments. The GST is consumption based tax levied on the supply of Goods and Services which means based on the input tax credit method, it would be levied and collected at each stage of sale or purchase of goods or services. Once it is in force, GST will replace at least 17 state and federal taxes.

The GST Council on Saturday cleared the pending rules, including transition provisions and returns, with all the states agreeing to 1 July roll out of the Goods and Services Tax.

“We were discussing the rules and (they) have been completed. Transition rules have been cleared and everybody has agreed for 1 July roll out,” Kerala finance minister Thomas Isaac told reporters in New Delhi.

GST Rollout on 1 July

The GST Council had last month fitted over 1,200 goods and 500 services in the tax brackets of 5, 12, 18 and 28%.

Finance minister Arun Jaitley chaired the 15th meeting of the GST Council which is scheduled to decide on tax rate of 6 items including gold, textiles and footwear. Isaac’s statement of all states agreeing to the 1 July rollout assumes significance as West Bengal chief minister Mamata Banerjee had said that her state will not roll out the new indirect tax regime in its present form.

All the 30 States and Union Territories (having assemblies) are now on board and ready for the smooth roll-out of GST with effect from 1st July, 2017 barring Jammu and Kashmir. Paving way for the rollout of the Goods and Services Tax, all states UTs have passed their State Goods and Services Tax (SGST) Act. Earlier, the three states that were left to pass the SGST Act were Kerala, West Bengal and Jammu and Kashmir. However, Kerala issued an Ordinance today approving State GST Act while the State of West Bengal had issued an Ordinance in this regard on 15th June 2017 while all other states and UTs have passed it in their respective legislative assemblies. The only state left to pass the SGST is the State of J&K.

If a state keeps out of passing the GST Act, both its traders and consumers will suffer loss because they will not get the benefit of input tax, they will have to pay tax twice and the consumers will get materials which are costlier than the rest of the country. Union Finance Minister Arun Jaitley has said that the compensation package won’t be given to states who do not implement GST.

GST Rollout on 1 July

The State GST Act has been passed in the following States:

Sl. No.Name of the StateDate on which SGST Act passed in the Assembly
1.TelanganaAct Passed on 9th April 2017
2.BiharAct Passed on 24th April, 2017
3.RajasthanAct Passed on 26th April 2017
4.JharkhandAct Passed on 27th April, 2017
5.ChhattisgarhAct Passed on 28th April, 2017
6.UttarakhandAct Passed on 2nd May, 2017
7.Madhya PradeshAct Passed on 3rd May, 2017
8.HaryanaAct Passed on 4th May, 2017
9.GoaAct Passed on 9th May, 2017
10.GujaratAct Passed on 9th May, 2017
11.AssamAct Passed on 11th May, 2017
12.Arunachal PradeshAct Passed on 12th May, 2017
13.Andhra PradeshAct Passed on 16th May, 2017
14.Uttar PradeshAct Passed on 16th May, 2017 (in both the Houses)
15.PuducherryAct Passed on 17th May, 2017
16.OdishaAct Passed on 19th May, 2017
17.MaharashtraAct Passed on 22nd May, 2017
18.TripuraAct Passed on 25th May, 2017
19.SikkimAct Passed on 25th May, 2017
20.MizoramAct Passed on 25th May, 2017
21.NagalandAct Passed on 27th May, 2017
22.Himachal PradeshAct Passed on 27th May, 2017
23.DelhiAct Passed on 31st May, 2017
24.ManipurAct Passed on 5th June, 2017
25.MeghalayaAct Passed on 12th June, 2017
26.KarnatakaAct Passed on 15th June, 2017
27.West BengalOrdinance Passed on 15th June, 2017
28.PunjabAct Passed on 19th June, 2017
29.Tamil NaduAct Passed on 19th June, 2017
30.KeralaOrdinance Passed on 21st June, 2017

GST Rollout on 1 July

Sl No.TopicDOWNLOAD LINK
1.Schedule of GST rates for services CHECK HERE
2.GST Tariff Code in Uttar Pradesh CHECK HERE
3.Complete Details on GST CHECK HERE

Check here for more GST Offline Utilities – Click

Check here to download Download Printable GST Filing Date Chart :

SL NO. TOPICSLINK
1.Download Printable GST Filing Date Chart PDFCHECK HERE
2.Download Printable GST Filing Date Chart EXCELCHECK HERE

Check here to know more on GST and to download GST Billing Rules :

SL NO. TOPICSLINK
1.Invoicing Under GST CHECK HERE
2.Invoicing Under GST RulesCHECK HERE

Check here to know more on GST HSN Code with Rate :

SL NO. TOPICSLINK
1.GST Rate ScheduleCHECK HERE
2.GST Rate by GST CouncilCHECK HERE
3.GST HSN Codes EnrollnmentCHECK HERE

Check here to know more on GST HSN CODE in Excel Format :

SL NO. TOPICSLINK
1.GST HSN Code list in Excel FormatCHECK HERE
2.GST Rate List with HSN Code – All Items ListCHECK HERE
3.GST Invoice Format PDFCHECK HERE
4.GST Invoice Format ExcelCHECK HERE
5.

HSN Code List for GST in Word

CHECK HERE 
6. Item Wise GST Rates Decided on 18th June 2017 on Certain ServicesCHECK HERE

Check here to know more on GST Delivery Challan :

SL NO. TOPICSLINK
1.GST Delivery Challan Excel format 1CHECK HERE
2.GST Delivery Challan Excel format 2CHECK HERE
3.GST Delivery Challan PDF formatCHECK HERE

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