CLR Note: Goods and Services Tax (GST) is expected to be implemented with effect form 1st April, 2016 as the centre and the states have completed the drafting of the model laws. Now, the empowered committee of the Finance Ministers of the states are likely to meet this month to discuss and deliberate on the GST model laws and take the legislation forward.
The Centre and states have completed the drafting of model Goods and Services Tax law as well as an integrated-GST or iGST law, which will be put up in public domain by early November.
According to a government official, the Empowered Committee of state Finance Ministers is likely to meet this month to discuss the legislations — CGST, SGST and iGST.
“The model GST law and iGST law has been circulated among the states. The Empowered Committee would meet soon to discuss them.
The Central GST (CGST) will be framed based on the model GST law. Also the states will draft their own State GST (SGST) based on the draft model law with minor variation incorporating state based exemption.
“Trade and Industry should also be a part of the law because ultimately they would pay the tax.
The drafts of the proposed legislations are based on three principles — definitional clarity, certainty in assessment and promoting ease of doing business.
Although the government had planned to roll out the GST, which is being termed as the most comprehensive indirect tax reform since Independence, from April 1, 2016, it seems difficult in view as the Constitution Amendment Bill is stuck in the Rajya Sabha where the ruling NDA does not have a majority and thereby delaying its implementation.