For the third time in a month, the Goods and Services Tax Council, chaired by Finance Minister Arun Jaitley, failed to reach an agreement on the contentious issue of dual control. Though, the GST council discussed draft laws needed to facilitate rollout of the tax reform but progress on finalising them was limited, therefore the council is scheduled again to meet on December 11 and 12.
The Finance Minister has said that the draft CGST and SGST laws were discussed in the last meeting, though approval will take some time. He expressed confidence that there is a positive movement as far as laws are concerned during the next meeting, but 2-3 suggestions have come on the critical issue of cross empowerment. He also noted that the roll out of GST bill before September 16, 2017 has become a constitutional requirement.
Jaitley further said that they have started approving the laws clause by clause and almost 9 chapters of each have been discussed. They are heading towards consensus on these laws. There are two other laws includes Compensation and IGST which will be discussed in the next meeting. He added that the issue of dual control linked IGST remains unresolved and will discuss this as well in the next meeting.
The next GST council meeting will attempt to hammer out the differences on which assessees will be controlled by states and who would be governed by centre, as also approving the draft supporting legislation CGST and SGST. Moreover, the Council will also have to approve a law detailing compensation to states for loss of revenue in the first five years of the rollout and Integrated GST (IGST). Finance Minister had recently said that rolling out GST before September 16 has become a constitutional necessity as states will not be able to collect their share of taxes henceforth, there is no scope to delay the decision any further.
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