The Goods & Service Tax Council has paved the way to roll out new tax regime from July, clearing all legislations required for one of the most ambitious reform measures since Independence. The council has approved the state GST (SGST) and the union territory GST (UTGST) bills.
The government is now expected to seek cabinet approval for the central GST (CGST), integrated GST (IGST), and UTGST and compensation bills next week and hopes to get it approved by Parliament in the ongoing Budget session. State cabinets will examine the SGST bill and seek approval from respective assemblies. Delhi Deputy Chief Minister Manish Sisodia said a July rollout now looked feasible. The GST Council has already approved rules and regulations linked to registration, payments, refund, invoice and returns, but these may require minor corrections, Finance Minister Arun Jaitley said.
He added that the council will meet again on March 31 to approve regulations on composition, valuation, input tax credit, and transitions. "Once that is done, we will be ready for GST implementation. We intend to immediately after March 31... take up the exercise of fitment of slabs. We will have a sufficient buffer in terms of time between the entire preparatory exercise and July 1 date fixed for implementation," he said, adding that the progress was in the "right direction." The GST has been seen as a top reform priority by the Modi government and its implementation, after having missed several deadlines, is expected to add to the government's reform credentials and help raise the country's attractiveness for foreign investors while cleaning up the messy indirect tax structure.
"With the clearance of SGST and UTGST bills by the GST council, the decks are cleared for introduction of the GST law in Parliament and assemblies. This is a resounding reiteration from the government about their seriousness to introduce GST by July 1," said Sachin Menon, national head of indirect tax at consultancy firm KPMG.
