Shrugging aside ‘rumours’ on a delay in the implementation of Goods and Services Tax Act (GST), Revenue Secretary Dr Hasmukh Adhia on Tuesday said that one should not be misled by them. “The rumours about GST implementation being delayed are false. Please do not be misled by it,” tweeted Adhia.
The rumours about GST implementation being delayed are false. Please do not be misled by it.
— Dr Hasmukh Adhia (@adhia03) June 13, 2017
The government is facing multiple challenges as it races to roll out the GST from July 1.
E-ways Rules not finalised
On May 25, Goods and Services Tax Network (GSTN) chairman Navin Kumar told The Indian Express the implementation of the e-way bill could be delayed as the draft rules had not been discussed or drafted by the GST council.
Once implemented, the e-way bill will track intra-state and inter-state movement of goods of value exceeding Rs 50,000 and providing tax officials the power to check the bill at any point– while goods are in transit — to check evasion.
But rules for e-way bill are expected to come into force, not before December, Kumar had told Indian Express. “That (e-way bill) will take time. That will not happen on July 1. I think the earliest that it can happen is by December because the Council has not approved the rules yet. (When) the rules are there, only then we will start working on it,” said Kumar.
IT infrastructure not tested
Another cause of concern is the IT infrastructure for the GST network has still not been tested.
According to The Hindu, enrollment of businesses under GST continues to lag, with only about 70 per cent of them migrating as of the April 30 deadline.
“Unless we have tested the GSTN how can we say we are ready? Then there are 14 draft GST rules in the public domain, which are yet to be finalised. We also have no clarity on whether new rules will come in or only 14 will be there. July 1 seems to be a very aggressive date for roll-out,” Bimal Jain, Chairman, Indirect Taxes Committee, PHDCCI had told The Hindu.
Meanwhile, Opposition has been demanding the central government to speed up the roll-out of the new tax regime. In March, senior Congress leader Veerappa Moily, speaking in the Lok Sabha, said that India has lost Rs 12 lakh crore due to the delay in implementation of the GST as the BJP stalled it under the UPA regime.