GST implementation deadline of April 1 seems unachievable

The Dollar Business Bureau

As both the Central and State governments struggle to resolve the contentious issues of dual control of assesses, the Goods and Services Tax (GST) implementation date on April 1 next year now looks virtually impossible, with some states even pitching for an alternate roll out date in September.

The GST council held its 6th meeting to decide on the dual control of the framework however, the council members could not resolve the contention issues. The GST Council would hold its next meeting on December 22-23.

“In the draft legislation there are about 195 sections. So it is the core bill of the legislation. We discussed 99 sections and a few clauses need to be redrafted. We would change that during the course of time. Hopefully, in the next meeting we would be able to clear the legislation part,” Finance Minister Arun Jaitley said.

Although Jaitely did not categorically state that the Central government would not be fully ready to implement the GST regime on the earlier scheduled date, states such as Tamil Nadu and Kerala underscored that the April 1 deadline looks unachievable and the GST could be implemented from September.

Kerala FM Thomas Isaac said demonetisation of Rs.500 and Rs. 1000 has eroded states’ trust. “April 1 deadline is out of picture, GST can be rolled out only by September”.

Tamil Nadu also said the April 1 implementation date seems unlikely. “Too many sections of law yet to be finalised, GST can’t happen without consensus on dual control,” Tamil Nadu Finance Minister said.

Jaitley, however, reiterated that the Central government still stands by the April 1 deadline of implementing the GST. “We do not have the discretion of time. By September 16, 2017 the curtains will draw on the old taxation rules,” the finance minister said.

State governments have come up with their own set of proposals under the GST proposed GST tax rates. Some of them are in favour of administering companies and business whose annual turnover is less than 1.5 crores. The Central government, however, seeks a shared control with states over taxpayers on products in all sectors. In addition, the Centre also wants complete control on taxpayers who pay their taxes, but states too want a share.