In order to assess the implementation hurdles under the new tax regime, the GST Council is all set to begin its 2-day meeting on January 3, with the officials from six key sectors, including IT, telecom, banking and insurance. During the meeting, it is likely to finalise the draft of the model Integrated GST (IGST) Bill, the draft compensation Bill and also reach a solution on the thorny issue of cross-empowerment.
Software association Nasscom, which is also scheduled to meet the GST Council, would express its worries over issues such as tax treatment of software and also make a case for single registration under the new GST regime. Nasscom’s worries pertain to areas like classification of software, import of services from related parties and taxation rules based on location of receiving services and it is also of the view that the legislation should clearly provide for centralised registration of central taxes of IGST (Integrated-GST) and CGST (central GST), which is within the Central Government power itself. R Chandrashekar, President of Nasscom had said that Software association support’s GST bill but it should not complicate the business operations of IT companies.
This will be the eighth meeting of the Council, chaired by Union Finance Minister Arun Jaitley and having state ministers as members. Seven meetings were held so far which cleared as many as 20 chapters of the model GST law. However, Finance Minister has been unable to break the deadlock on the most crucial issue- the Interstate GST or (IGST) law- that concerns who will have a bigger say on goods and services that are sold between two or more states.
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