GST to be rolled out in April 2016

Finance Minister Arun Jaitley has been giving his best to bring uniformity in tax rates. Finance ministry has recently approved the formation of two committees for facilitating implementation of Goods and Services Tax from 1.4.2016. Tax improvement is a much needed manifestos since very long time by traders, business person as well as customers too.

“The committees will suggest tax rates and look into IT preparedness for the new indirect tax regime,” explained Finance ministry.

Committee formed under the Finance Ministry's Chief Economic Advisor would "recommend possible tax rates under GST that would be consistent with the present level of revenue collection of Centre and states," a statement said.

A Steering Committee been formed under the Co-Chairmanship of Additional Secretary, Department of Revenue and Member Secretary, Empowered Committee of State Finance Ministers. This Committee has members from Department of Revenue, Central Board of Excise & Customs, Goods and Services Tax Network (GSTN) and representatives of state governments.

This Committee shall monitor the progress of IT preparedness of GSTN/CBEC/Tax authorities, finalization of reports of all the Sub-Committees constituted on different aspects relating to the mechanics of GST and drafting of CGST, IGST and SGST laws/rules. The Committee shall also monitor the progress on consultations with various stakeholders like trade and industry and training of officers.

Another Committee has been formed under the Chairmanship of the Chief Economic Advisor, Ministry of Finance to recommend possible tax rates under GST that would be consistent with the present level of revenue collection of centre and states. While making recommendations, this Committee would take into account expected levels of growth of economy, different levels of compliance and broadening of tax base under GST.

Committees would analyze the sector-wise and state-wise impact of GST on the economy. Both the committees are expected to give its report within two months.

Meanwhile, progress is underway to finalize various aspects of GST design like business processes, payment systems, matters relating to dual control, threshold, exemptions, place of supply rules and also making of model GST, SGST and IGST laws and rules further added by finance ministry.

In-process work is being undertaken through various sub-committees formed by the empowered committee which has officers from Government of India as well as state governments as members.

Also, Goods and Services Tax Network (GSTN) is taking steps for preparing the IT infrastructure to implement GST. IT infrastructure will ensure online registration, filing of returns and getting refunds.  Necessary back end IT infrastructure is being prepared which will relate to aspects like assessments and audit.

Periodic reviews are being held in the Department of Revenue to monitor the progress of all the above activities.