GST Legislation Draft to be finalised by Sept 15’2015

Advocate Anandaday Misshra

GST Legislation

The Revenue secretary , Mr Das has clarified that three draft legislations are being prepared by different committees comprising

i) senior officers of the CBEC,

ii) department of revenue and finance as well as

iii)taxation department officials of state governments

Out of three committee’s , one has already finalised its draft while others will also submit the draft by 15th September 2015.

It is equally important to understand that the three legislations are

i) Central GST (CGST),

ii) State GST (SGST) and

iii) integrated GST (iGST)

But , these legislations can be moved for passage in Parliament after the constitutional amendment Bill on GST becomes an Act.

GST Bill

Shri Arun Jaitley ,Finance Minister, Union of India  while addressing a conference of chief commissioners and director generals of the Central Board of Excise and Customs (CBEC),insisted upon officials  to get  ready for an implementation of GST. 

Finance Minister further said that GST is going to be extremely friendly to the economy, to the businesses. It has the capacity to widen the base and yet reduce the level of harassment. It has the capacity to add to the country’s GDP.

GST Council Vs GST Rate

Since 2014, AMLEGALS had firmly taken a view and suggested that Service Sector will not attract a GST rate more than 16% otherwise it will be unhealthy for the service industry .

Further , we have been also saying ,in various articles ,that the rates of GST will hover between 18% -24% as a maximum cap .

Now it is being said that Government is sensing that real growth of Service tax hovers around 16%.

Hence, a moderate of GST is on card but not on higher side .

However, GST Council shall be the authority to decide on GST rate slabs for different Goods and Services.