Thursday, June 18, 2015

FinMin sets up two panels for roll out of GST from April 2016

FinMin sets up two panels for roll out of GST from April 2016

New Delhi: Gearing up to roll out GST from April 1, 2016, the Finance Ministry today set up two committees to suggest tax rates and look into IT preparedness for the new indirect tax regime.

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.

While making recommendations, it would take into account expected levels of growth of economy, different levels of compliance and broadening of tax base under Goods and Services Tax (GST), Finance Ministry in a statement said.

“The Committee would also analyse the sector-wise and state-wise impact of GST on the economy. The Committee is expected to give its report within two months,” it said.

The statement added, Steering Committee has been formed under the Co-Chairmanship of Additional Secretary of Revenue Department and Member Secretary of Empowered Committee (EC) of State Finance Ministers.

The panel has members from Revenue Department, Central Board of Excise and Customs (CBEC), Goods and Services Tax Network (GSTN) and representatives of state governments.

It would monitor the progress of IT preparedness of GSTN/CBEC/Tax authorities, finalisation of reports of all the sub-committees on different aspects relating to the mechanics of GST and drafting of CGST, IGST and SGST laws/rules.

Also, the Committee would monitor the progress on consultations with various stakeholders like trade and industry and training of officers.

The committee were announced a day after Chairman of EC K M Mani submitted states’ views on the GST to the Rajya Sabha Select Committee scrutinising the GST bill.

The Finance Ministry further said progress is underway to finalise various aspects of GST design like business processes and payment systems and also making of model GST, SGST and IGST laws and rules.
“This task 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,” it added.

Goods and Services Tax Network (GSTN) is taking steps for preparing the IT infrastructure for roll out of GST, it said and added the IT infrastructure would enable online registration, filing of returns and getting refunds.

Various State Governments are also preparing the necessary backend IT infrastructure for implementation of GST which would relate to aspects like assessments and audit.

The Constitutional Amendment Bill for rolling out of GST has been referred to a Rajya Sabha Select Committee. The Lok Sabha has already cleared the Bill.

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