What is current scenario of GST in 2017?

GST

All about the scenario of GST categorized into 3 parts.

  1. What has happened till date
  2. What is happening now
  3. What Next

WHAT HAS HAPPENED TILL DATE

  • Parliament Passed Constitution Amendment Act (August, 2016):After continuous logjam in the Parliament for a period of more than one year, the Rajya Sabha passed the Constitution amendment bill after incorporating certain amendments on 3rd August, 2016. The amended bill was passed by Lok Sabha on 8th August, 2016.
  • Ratification by the State Assemblies (August-September, 2016):To pass the constitution amendment the bill has to be ratified by atleast 50% of the State assemblies. On 12 August 2016, Assam became the first state to ratify the bill, when the Assam Legislative Assembly unanimously approved it. Orissa became the 16th state to ratify the bill and this paved the way for GST.
  • Assent by the President (September, 2016):After being ratified by the requisite number of state, the bill has been placed before President for getting his assent. The bill received the assent of the President on 8th September and it shall now be known as 101st Constitution Amendment Act, 2016.
  • Notification of the 101st Constitution Amendment Act (September, 2016):The 101st Constitution Amendment Act contains 20 sections. Section 12 has been notified w.e.f 12th September, 2016 paving the way for formation of GST Council. The rest 19 sections have been notified w.e.f. 16th September, 2016.
  • Constitution of GST Council (September, 2016):The Union Cabinet on 12th September, 2016 granted its approval to the formation, process and functioning of GST council. The council is being headed by the Union Finance Minister and is responsible for recommending and finalising the GST related provisions in the Country
  • Draft GST Model Law and GST (Compensation to the States for loss of Revenue) bill, 2016 placed in public domain (November, 2016):The revised drafts of three Goods and Service Tax laws i.e Draft GST Laws, Draft IGST Laws and Draft GST (Compensation to the states in case of loss of Revenue) Bill have been released after incorporating suggestions from stakeholders on 26th November, 2016.

WHAT IS HAPPENING NOW

  • Migration of Existing dealer: The GST portal(www.gst.gov.in) has been launched by Govt and the process of migration of existing dealers registered under VAT/CST/ Service Tax/ Excise and other State Indirect Tax laws has been started. The process of migration is still going on. Though initially end date for the purpose of migration has been specified in the portal, but removed later on. (Period:From 8th Nov, 2016 till date)
  • Meetings of GST Council: Several meetings of the GST council held since its formation and many of the important decisions has been taken. Till date the GST council has finanlised the rate of taxes, exemption threshold, majority of the sections of CGST/SGST & IGST draft act, draft rules, formula of compensation to states etc. Consensus on the issue of cross empowerment and dual control has been eluded for a certain period but finally the issue has been resolved in the 9th meeting of GST council held on 16th January, 2017. (Period : From 22nd September till date)

WHAT NEXT

FM in his press meet on 16th of January, 2017 mentioned that the rollout date for GST has been shifted to 1st July, 2017 and following exercises are to be completed mainly:

  • Modification of draft laws: All the CGST, SGST and IGST laws has to be modified incorporating the decisions taken in the GST Council and will come up for consideration before the GST Council in its next meeting to be held on 18th February. (Target date: 18th Febuary, 2017)
  • Approval by Legislative Bodies: Once approved by the council, the drafts of the supporting acts will be sent to Legislative bodies for approval. CGST & IGST drafts will be placed before the parliament and the SGST draft will be placed before the respective state assemblies. (Target date: 2nd part of Budget session starting from 9th March, 2017)
  • Notifying the rules: The related rules after necessary modification will be approved by the GST council and will be notified accordingly. (Target Period: March/April, 2017)
  • Fitment of rates in various slabs: The GST Council has fixed the four-tier structure of 5 per cent, 12 per cent, 18 per cent and 28 percent. The process of fitment of various commodities in the rate structure is going on. (Target Period: June, 2017)
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