Goods and Services Tax Updates

Goods and Services Tax Updates

Goods and Services Tax is now on expected to be implemented from 1st July, 2017 in India after more than a decade of formal process initiation.

FM P Chidambaram mooted the GST Bill in the Budget Speech of 2006-07.

FM Arun Jaitley Introduced Constitution Amendment Bill for GST in Lok Shabha in December, 2014.

With passage of 122nd Constitution Amendment Bill for GST in August, 2016; way had been paved for GST Implementation; and with inclusion of clause of maximum time limit of 1 year, it is required that GST gets implemented before 16th September, 2017.

On  29th March, 2017 – Lok Shabha takes up the GST bills for discussion and are finalised by Lok Shabha after more than 13 meetings of GST Council, which faced many hiccups in getting unanimous approval of all members of GST council (All state finance ministers and Finance Minister of India).

 

GST is expected to come with four-tier rate structure of 5%, 12%, 18% & 28%.

Classification of Goods and Services into each tier of rate will be finalised by GST Council in their meeting to be held on 18-19 May, 2017.