GST LATEST NEWS

7/29/2019 GST LATEST NEWS

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GST PANEL TO FRAME MODEL GST LAW; 3

COMMITTEES TO ADDRESS ISSUES

SOURCE: ZEE NEWS

New Delhi: State finance ministers on Thursday decided to prepare

model legislation and set up three committees to sort out various

issues for smooth roll-out of the Goods and Services Tax (GST).

"There was a broad consensus ... Three committees were notified

today to go into the details ..," the Chairman of Empowered

Committee of State Finance Ministers, Sushil Modi, said after the

meeting with Union Finance Minister P Chidambaram here.

The state finance ministers decided to set up panels to address

issues such as Integrated GST (IGST) and VAT on imports. The

committees would also consider dual control threshold and

exemptions, and revenue neutral rate and place of supply rules,

Modi said.

"Besides, the Empowered Committee will draft a model legislation,

as after the Constitution is amended we require a model bill which

has to be passed by every state legislature," Modi said.

On providing compensation to states for reducing central sales tax

(CST) rate, Modi said that Chidambaram will "make provisions in

this budget for providing full compensation for 2010-11".

"Out of total 2010-11 compensation, Rs 7,000 crore has already

been paid so whatever is remaining Finance Minister will provide in

the Budget," he said.


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However, there appeared to be differences among states on the

issues of autonomy and CST compensation.

On whether GST can be rolled out from April 1, 2014, Madhya

Pradesh Finance Minister Raghavji said: "I don't think so. Autonomy

is the main issue. By Constitution, sales tax has been assigned to

the states. Sales tax should be levied by states ...

"They (Centre) are not prepared to give 100 percent compensation

but states insisted on 100 percent compensation".

Gujarat Finance Minister Saurabh Patel said: "Many states askedfor full compensation. (Compensation) Issue has not been resolved.

It will resolve on February 28 ... When the budget comes .. What is

the allocation made in the budget".

West Bengal Finance Minister Amit Mitra said: "As far as CST

compensation is concerned, it has to be there to a degree that

position of states is recognised, and therefore autonomy andcompensation, these are the two main issues".

Last month, the states had agreed to a lower payment of Rs 34,000

crore for phasing out the Central Sales Tax (CST), a pre-condition

for rollout of the GST.

According to the resolution at the meeting in Bubaneshwar on CST

issue, the Centre would bear 100 percent of the loss accrued tostates in 2010-11 fiscal on account of lowering of CST. However, for

2011-12 and 2012-13 fiscal, the Centre would give 75 percent and

50 percent of the losses to states.


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CST, a tax imposed on the inter-state movement of goods, was

reduced from 4 percent to 3 percent in 2007-08 and further to 2

percent in 2008-09 after the introduction of Value-Added Tax

(VAT).

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Budget 2013-14: GST will open India as single market

Shashi Kiran Shetty

Allcargo Logistics

With the government's decisiveness to roll out the much-awaited Goodsand Service Tax (GST), we hope that the implementation will eradicatethe hurdles by simplifying tax structure. This move will open 'India' asone single market and bring down state level barriers. In the long-term,GST will stimulate the emergence of true "hub-and-spoke" system, withcompanies setting large hubs in key strategic gateway locations coupled

with smaller spoke warehouses nearer to metro/ urban consumptioncenters.In India, companies still utilize road transportation for majority of thegoods movement. The government must accelerate laying and upgradation of freight corridors and highways that will result in fastertransportation, lower fuel consumption and wastage. We also hope thatthe government recognizes that logistics is the backbone of our economyand sets up a regulatory / governing body.

We hope that over a period of time the shipping ministry will promotecoastal shipping in India by doing away with custom duty for ships whichare built and operated in a foreign country, however under the IndianFlag. We also wish that the government of India finally accepts the long

pending demand of the industry to abolish the custom duty on coastalships thereby making it economical for the ships to operate in the Indiancoast. As per several representation made, coastal shipping is the mostefficient way to transport good, it not only helps to decongest the Indianroads and burn less fuel, it also is cost effective thus helping Indianmanufactures become more competitive in their products, helping theconsumers and also helping the in managing the inflation.


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All the infra projects need to have the environment clearance beforesending it for bidding, so that there is complete transparency and

visibility for the participating company.Last but not the least, we recommend the abolition of TAMP at the

earliest. The JNPT terminal which is the most important port handlingwell over 60% country's container trade has become extremelycongested. It is showing India in poor light due to frequent break downin port operations due to many reasons, a primary one being the TAMPregime. This has demotivated the private terminals to perform to theircapacity which has caused tremendous strain on the efficiency of the portmaking the Indian export far more expensive and delay leading thecancellation of several orders in this extremely difficult situation.There are plenty of suggestions that have been made in the past to

initiate the transaction cost, without the authorities intervening on the

day to day transactions of the Logistics companies. We definitely wish

that the government pays to attention to all the suggestions made to

bring about the reforms.

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