GST cleared from both the house

Rajya Sabha clears decks for GST rollout from July 1

     Decks have been cleared for the pan-India implementation of the Goods and Services Tax (GST) from July 1 with the Rajya Sabha passing the much-awaited four enabling bills on Thursday. The four bills — Central Goods and Services Tax (GST) Bill, Integrated GST Bill, Compensation GST Bill and Union Territory GST Bill 2017 — were passed by the Rajya Sabha and returned to Lok Sabha, after a discussion of almost nine hours, spread across two days. Replying to the debate on the four bills in the Rajya Sabha, Finance Minister Arun Jaitley said the goods that are exempted from taxes currently will remain to be exempted once the GST is in place. “Whatever goods are exempted from tax today, will remain exempted. The present status quo will continue,” he said. Jaitley said to make tax filing easier under the GST, the provision of quarterly returns is there in the new indirect tax regime. Noting that both the central and state governments are pooling their sovereignty to have this tax regime, Jaitley noted that India, despite being one political entity, remained different economic entities with states having different taxes. “In the concept of goods and services tax, both Centre and states simultaneously have the power to levy tax. GST is the only tax which is simultaneously levied by Centre and states,” he said. Clarifying on the tax rate on petroleum products in the regime, Jaitley said the Council has decided that the petroleum products though they have been included under GST, will remain zero rated as of now.

Lok Sabha passes bill to make Excise, Customs Acts compliant with GST

     The Lok Sabha on Thursday passed a bill which will ensure continuance of levy of excise on petroleum products and abolition of cess on some other items following GST rollout from July 1.

     The Taxation Laws (Amendment) Bill, 2017 seeks to amend the Customs Act, 1962, the Customs Tariff Act, 1975, the Central Excise Act, 1944, the Finance Act, 2001 and the Finance Act, 2005.

     Moving the bill which was passed later by the House by a voice vote, Minister of State for Finance, Shri Santosh Gangwar said the amendments in these laws were necessary because after the roll out of GST on July 1, only a few items would remain under these Acts.

     After the rollout of the GST, Central Excise duty on goods other than crude oil, petrol, diesel, ATF and natural gas, Service Tax on taxable services and VAT on sale or purchase of goods will be subsumed in the new indirect tax regime.

     “Therefore, it requires certain consequential amendments in the Customs Act, 1962, the Customs Tariff Act, 1975, the Central Excise Act, 1944, the Finance Act 2001 and the Finance Act 2005 and repeal of certain enactments,” according to the statement of objects and reasons for the Bill.

     The bill seeks to include ‘warehouse’ in the definition of Customs Area to ensure that an importer is not asked to pay Integrated Goods and Services Tax (IGST) at the time of removal of goods from a Customs station to a warehouse.

     “The proposed bill also seeks to abolish the cess levied on water consumed by certain industries and by local authorities under the Water (Prevention and Control of Pollution) Cess Act, 1977,” the bill says.

     Doubt has been raised, whether the “delivery” would be effective under the new regime since adequate infrastructure is not in place.

...From Sources