CA Swapnil Munot
On 27th July 2016 Union Cabinet approved the GST Constitution Amendment Bill with some amendment. Now,
1. There will not be 1% levy on Inter State Sales.
2. Most probably, GST rate will not be specified in Constitution.
3. States will get a full five years of compensation for any revenue loss.
Next Journey of GST Constitutional Amendment Bill is explained in this image.
Note that, Once GST Constitutional Amendment bill is passed, it will give power to center to frame the GST Act and pass it through parliamentary Process. This constitutional amendment bill is just giving power for Birth of GST Law.
What Next, Once GST Constitutional Amendment Bill is passed ?
1. Center GST Law needs to be finalized and passed it through parliamentary procedure which again will take its considerable time.
2. Also All state needs to frame there State GST Act and Pass it through State Assemblies.
3. Once It is done, Industry should be given sufficient time to understand shift in taxation impact, needs to reframe its business Policy & Arrangement / Contract Executed etc.
What could be Possible timeline for Implementation of GST Act ?
Passing of Constitutional Amendment bill is completion of first and important process. However as explained above, so many procedure needs to be completed which is not so easy. Therefore in our opinion, If everything works smoothly, then GST could be implemented in mid of 2017 that is by Oct 2017. Else it will take April 2018.
What industry should do ?
Industry is expected to observe the progress of GST. Formation of Internal GST team could be first step. Model GST Law is already published. Industry should come forward and give their suggestion & feedback on Model GST Law.
Hope you have got status of GST as on date. For any further clarification, kindly revert.
(Author is associated with S M Munot & Associates and can be reached at munotswapnil@gmail.com)
Author Bio
thank you for the updates sir