State FinMin panel to discuss model GST law

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As uncertainty looms over Constitutional Amendment Bill

As part of the preparatory work for GST introduction, the Empowered Committee of State Finance Ministers will meet on Tuesday to discuss the draft of the model GST legislation that can be used by States.

This is even as uncertainty looms over Parliament passage of the most critical Constitutional Amendment Bill to usher in dual GST regime in the country.

Besides, the passage of Constitutional Amendment Bill by Parliament, the States will also be required to pass laws for ushering in State Goods and Services Tax (SGST) under this dual tax system.

Indications are that the model legislation for SGST will be discussed at the meeting on Tuesday.

The States will also be required to adopt an integrated GST law that would cover GST framework on inter-State transfer of goods and services. The Centre is also required to enact a law on central GST.

The Modi-led Government has already indicated that it is willing to advance Parliament session (the Winter Session) if a consensus on GST is reached.

With no signs of support coming from main Opposition Congress, the Government had recently dropped plans for calling a special session of Parliament for passage of the GST Bill.

Not reconvening the monsoon session and instead deciding to prorogue both Houses was seen as a setback for GST introduction. There is also a view in certain quarters that the April 1, 2016 deadline will be missed.

(This article was published on September 13, 2015)
Source: http://www.thehindubusinessline.com/economy/state-fms-to-meet-on-sept-15-to-finalise-model-gst-rules/article7648190.ece

 

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