Finance minister Arun Jaitley on Saturday said the Goods and Services Tax (GST) regime needs to be implemented between April 1 and September 16, 2017, due to constitutional compulsions.
“The council (GST) is working towards resolving the deadlock. Nobody has the luxury of time,” Jaitley said in his address at the 89th annual general meeting of Federation of Indian Chambers of Commerce and Industry (Ficci) here.
The Constitution (One Hundred and First Amendment) Act, 2016 was notified on September, 16 for the GST to come into force within a period of one year.
“So on September 16, 2017, as far as the current mode of taxation is concerned, the curtains will be down and nor the Centre or states can go in for taxation under the current regime,” Jaitley added.
“Ideally GST should come into effect from April 1, 2017. The earlier we do it, the better it is to adapt to the new system,” he said.
The finance minister said the Central GST, integrated GST and state compensation matter for revenue losses bills were currently in the process of getting drafted, which needs to be passed by the Parliament.
“The GST council now has to take vital decisions. I don’t see any difficulty in getting these bills passed. The only issue is of assessee jurisdiction,” he said.
Jaitley said that the crucial issue of dual control or who will exercise control over GST assessees — the Centre or the states – still needed to be resolved in the Council but assured that each assessee will be assessed only once.
“How this burden is going to be shared between the states and Centre. With the parrallel set-ups in place. It has to lead to federal bureaucry, but it is still a far cry. So it is a small issue and we are trying to resolve it,” he added.