On Monday, the Goods and Service Tax India Council finally agreed to roll out the GST from coming July 1 in place of April 1st, which was the earlier deadline. However, this is yet to be decided that among the centre and the state, which will evaluate the entity. This will be decided by a computer programme. With this, a congestion on the right to tax economic activities was also solved within the span of 12 nautical miles from India’s coast line.
As mentioned by Arun Jaitley, the Union Finance Minister and the chairman of the council, combining the two suggestions, the tax would be based on the combination of states and Centre with an already decided ratio. Within the yearly turnover of Rs. 1.5 crore, the centre have agreed on giving 90 per cent of assesses to state. On the other hand, the centre will own the power to audit, send notice and scan the left out 10 percent in the total amount. However, West Bengal’s Amit Mitra is yet to give his consent on this. He has also opposed the power which has been given to the officials under GST.
Also, the heavy value turnovers like of Rs. 1.5 crore will be managed by the Centre and state in 50-50 ratio. Jaitley also confirmed that, there will be enforcement based on computer assessment and will not be done by dual authorities. The assesses falling under GST will be managed by the state and the Centre depending on the yearly turnover of Rs. 1.5 crore.
The central government official mentioned that, “Revenue will mostly come from entities with turnover of more than Rs 1.5 crore. Under that we get just three per cent revenue”. He also added to the fact that, “Mostly, they will remain the same over a two- to three-year period. But, we are yet to take a call on that”.
The structure which has been proposed also includes a provision of tax evasion upto Rs. 2 crore and exceeding to that. Up to the amount of Rs. 5 crore, there is provision of bail. On this, Mitra adds that, “Many of us strongly oppose it… Our officers do not have the right to arrest. It was, of course, watered down but is still there.”
February 18 will be the date for next meeting. Several changes will be introduced by that time and Parliament and state Assemblies will pass them. On this, M S Mani from Deloitte says that, “We hope the subsequent legislative processes are calendarised, so that the final legislation with relevant rules is available to businesses at least three months ahead of the roll-out”.