GST Council approved 5 sets of draft rules: Arun Jaitley

NEW DELHI: Speaking at a press conference, Finance Minister Arun Jaitley laid out details of decisions taken at the GST council. He was quoted saying by ANI: “There is one item on GST council which wasn’t taken up, calculation of annual increase of revenue. It will be taken on the next meeting of the Council, which is now going to be held on 18th, 19th and 20th of October. GST rate will be the big item that will be discussed in the next meeting. Once GST Act is passed, we want the draft rules to be ready in anticipation so that the rules can be notified immediately. GST compensation to the states will be decided later. GST Council has approved draft rules on registration for GST, payment, refund, returns & invoices debit & credit note. The GST council approved 5 sets of draft rules – registration, payment, refund, returns and invoices.

Earlier the government said it is working on a target date of April 1, 2017 for the rollout of Goods and Services Tax, and the first meeting of the GST Council was held in a “very cordial and constructive environment”, Finance Minister Arun Jaitley said. In his opening remarks at the Fourth Meeting of the Parliamentary Consultative Committee meeting here, he said the government so far is following the road map for implementation of GST “as per the schedule”.

The subject of meeting was GST, an official release said. Jaitley said that till September 16, 2017, one year after the provisions of the Constitution (101st Amendment) Act, 2016 being brought into force, the Constitution empowers the central government to levy excise duty on manufacturing, and service tax on the supply of services.

Similarly, the Constitution Amendment Act empowers the state governments to levy sales tax or Value Added Tax (VAT) on the sale of goods till that time September 16, 2016. The Finance Minister further said that the first meeting of the GST Council was held in a very cordial and constructive environment earlier this month. The GST Council is a joint forum of the Centre and the States. The Council will take decisions on important issues like tax rates, exemption list and threshold limits.

Members of Consultative Committee sought various clarifications with regard to GST Law and gave suggestions for its better implementation.

Some of the major suggestions include need for absolute clarity and transparency with regard to where taxes will be collected, assessed and where the appeal will be filed in case of GST regime.

As per a release, the members said that it will be a challenging task to tackle complex situation arising-out of implementation of GST law in a federal system.

Some of them suggested there is a need for launching a large scale awareness campaign especially for small traders as most of them are still unaware of the complex procedures and processes under the GST regime including registration and filing of returns.

With agency inputs