Committees set up to fast track implementation of GST in India

Small steps are constantly taken by our government to fulfill the dream of GST in India. Last month, GST Constitutional Amendment Bill was passed in Lok Sabha. It has cleared the Lower House of the Parliament but still many hurdles prevails that needs to be cleared. It has been targeted to implement GST by 1st April, 2016, and to achieve this target, Finance Minister has approved the formation of 2 Committees:   oie_7cpvQ74qyHej

  • Steering Committee- It has 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. The Committee would also analyze the Sector- wise and State-wise impact of GST on the economy. The Committee is expected to give its report within two months.

These committees set up to fast track implementation of GST in India. While the above Committee do their part of job, other related work 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 are under process to get finalize. Such work is undertaken by the sub- committee formed by the Empowered Committee.

Steps related to IT Infrastructure which shall enable online registration, filing of returns and getting refunds being taken up by Goods and Services Tax Network (GSTN). Without forgetting aspect related to assessments and audit, various State Governments are preparing the necessary back end IT infrastructure for implementation of GST.

Government, without neglecting any issue is working thoroughly over GST regime. Great effort is being put upon GST so that it can be implemented with effect 1st April, 2016. Since GST has been introduced for discussion in 2009, it has always remained a heated topic. GST will surely result in biggest reform in the field of Indirect Tax in India. It shall mitigate cascading or double taxation. Thus, coming of GST will bring more transparency, better compliance, and increase in gross domestic product growth and revenue collections in India.