Industry is prepared for GST rollout from July 1, says CII

Bruno Cirelli
Giugno 20, 2017

Further, eBay pointed out that the proposed legislation bears a striking resemblance to the Government's so-called "Netflix Tax" - the Tax and Superannuation Laws Amendment (2016 Measures No. 1) Bill 2016 - which sees the GST applied consistently to all supplies of digital products, such as software, and other imported services to Australian consumers. For August, the new deadline for GSTR-1 will be September 20, instead of September 10.

Though the new system will be in effect from July 1, businesses have been given time until September 5 to file returns for July.

Briefing reporters here during a pause in the Council's 17th meeting, Andhra Pradesh Finance Minister Yanamala Ramakrishnudu said that he has requested that textiles and fertilisers be exempted from the GST.

It also decided that hotel rooms costing more than Rs 7,500 a night will be taxed at 28 per cent under GST; rooms with tariffs in the range of Rs 2,500-Rs 7,500 a night will be taxed at 18 per cent. The middle slabs of tax have been kept at 12 and 18 per cent. GST is also said to be revising an unprecedented exercise in fiscal federalism.

At Sunday's meeting, officials also agreed on several sets of GST rules, including anti-profiteering guidelines meant to prevent traders exploiting the reform to ramp up prices. The "state of readiness of IT network was discussed at length", Jaitley said, adding that 81.1% of existing taxpayers have enrolled on GSTN.

The move to defer the implementation of e-way bill is welcome, as the e-way bill in its current process would have been cumbersome for the trade and requires considerable efforts by industry to prepare for the automated system. Mr Jaitley said, an official launch of the GST will take place in New Delhi on that day.

Another amendment states that the Productivity Commission must investigate the most effective model to collect GST, after receiving push back from major retailers with Australian operations such as Ebay and Amazon.

Revenue Secretary Hasmukh Adhia said the Centre was ready, but it was companies that wanted time to plug in. State-authorised lotteries will be taxed at 28 per cent of face value, Jaitley said.

The FINER President also sought 100 per cent excise duty refund under the GST and urged Rijiju to take up the matter with the central leadership.

The e-way bill rule has attracted criticism from various quarters, which have been mainly directed at the apparent cumbersome compliance involved.

No late fees would be charged in the interim period, the government said.

The new tax is said to be the most significant economic reform since BJP government came to power in 2014.

"It's incumbent on banks to quickly update the e-banking and other digital tools they provide to clients in order to make the transition as seamless as possible", says Greenwich Associates Managing Director Paul Tan.

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