GST model law will be ready by January next

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Ahmedabad: The model law of the much anticipated Goods and Service Tax (GST) will be out by the end of January next for general public for feedback. Speaking at a session on GST, here at GCCI, Sushil Solanki, principal additional director general (ADG) of Directorate General of Central Excise Intelligence (DGCEI) said that 80% of the draft of GST is ready while discussions on the remaining 20% are going on.

Solanki, who has been part of the committee working on GST in New Delhi, also said that GST might be implemented by mid-2016.

The passage of the GST Bill has been indefinitely delayed after opposition parties declined to support the tax reform measures. The government has now changed the rollout deadline from April 1, 2016 to June 1.

During his address, Solanki mentioned that the list of exempted items will be hugely reduced and therefore many of the currently exempted goods will now come under the tax net. “There will be many benefits of GST such as mitigation of double taxation, reduction of procurement cost and increased efficiency in use of resources which will compensate for this loss of exemption,” said Solanki. “The floor rate of the GST is expected to be around 15%-16%. In all probability, the rate will not be as high as 24%-25% as anticipated earlier by some people. Also there would be a common threshold exemption for state and central GST,” said Solanki in response to a query during the seminar at GCCI.

He also said that around 70% of the taxpayers (traders and dealers) will be assessed by state governments. “The dealers and traders who have annual turnover of Rs 1.5 crore or below will be regulated by state government. Also GST’s biggest positive will be ease in inter-state movement of goods,” added Solanki.

Talking about some of the innovative measures proposed to be incorporated in the GST system, Solanki said that an innovative ranking system is to be included which will provide an automatic check to the traders on the credibility of the dealers.

 Souirce:http://timesofindia.indiatimes.com/city/ahmedabad/GST-model-law-will-be-ready-by-january-next/articleshow/50295316.cms?from=mdr

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