GST Council clears rules, states agree to July 1 rollout

Finance Minister Arun Jaitley chaired the 15th meeting of the GST Council which is scheduled to decide on tax rate of 6 items including gold, textiles and footwear.

By: PTI | New Delhi | Published:June 3, 2017 3:11 pm
gst, GST Council, gst rollout, Goods and Services Tax, arun jaitley Finance Minister Arun Jaitley chaired the 15th meeting of the GST Council which is scheduled to decide on tax rate of 6 items including gold, textiles and footwear.

The GST Council today cleared the pending rules, including transition provisions and returns, with all the states agreeing to July 1 roll out of the Goods and Services Tax. “We were discussing the rules and (they) have been completed. Transition rules have been cleared and everybody has agreed for July 1 roll out,” Kerala Finance Minister Thomas Isaac told reporters here.

The GST Council had last month fitted over 1,200 goods and 500 services in the tax brackets of 5, 12, 18 and 28 per cent. Finance Minister Arun Jaitley chaired the 15th meeting of the GST Council which is scheduled to decide on tax rate of 6 items including gold, textiles and footwear.

Isaac’s statement of all states agreeing to the July 1 rollout assumes significance as West Bengal Chief Minister Mamata Banerjee had said that her state will not roll out the new indirect tax regime in its present form.

Bengal Finance Minister Amit Mitra is however attending today’s meeting. Banerjee had said yesterday that her government would not support the new GST system in its present form and that her government would write to Jaitley for making changes to make it suitable for all the sections of the society.

“We will not support the GST in its present form. In its present form, it doesn’t suit every section, especially the unorganised sector. They (Centre) have to rectify it… We have to continue with our fight to bring down the tax rates on certain products.

“Unless the rates are reduced, they will adversely impact the state’s economy and employment,” she had said.

As for the transition rules approved by Council, the industry had been demanding some relaxation of the provision of deemed credit.

The draft transition law provided that once GST is implemented a company can claim credit of up to 40 per cent of their Central GST dues for excise duty paid on stock held by businesses prior to the rollout.

Several dealers are choosing to wait and watch rather than buy and hold on to inventories. They have lobbied with the government seeking an increase in the credit limit.

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  1. G
    Ghanashyam
    Jun 3, 2017 at 8:17 pm
    What 18 on biscuits? And 3 on gold? Is this for rich or poor.
    Reply
  2. V
    vs
    Jun 3, 2017 at 6:23 pm
    A huge slap in the face of mamata begum. Dismiss her government with immediate effect.
    Reply
  3. P
    Parth Garg
    Jun 3, 2017 at 4:40 pm
    GST will certainly prove a disaster what with its complex provisions and unlimited compliance forms. Tax rates on the goods and the jurisdiction of the States and the Central would be subject of bitter contests in the Courts.
    Reply
  4. B
    Balasubramanya
    Jun 3, 2017 at 3:29 pm
    Well done FM and all state FM's for their path breaking decision for GST role out as per schedule July 1st.
    Reply