Govt considering early winter session for GST roll out

Competing against time to meet the April 1, 2017 target to roll out the landmark Goods and Services Tax (GST), the government is considering an early Winter Session of Parliament advanced by a fortnight to pass GST Bills, leaving adequate time for execution of the new indirect tax regime. Winter Session of Parliament is usually in the third or fourth week of November but this year the government is looking at beginning the month-long session quickly after the end of festive season.

The government also has to pass the supporting legislations for the Central Goods and Services Tax (CGST) and Integrated Goods and Services Tax (IGST) legislations that will pave way for the GST, to be approved within November or latest by early December. This two laws are designed to prop up the new tax regime after the Constitutional (122nd Amendment) Bill, which was passed in the Monsoon Session.

The GST bill which was passed in the monsoon session needs the nod of atleast 50 per cent of the states. Already the constitution amendment bill has been ratified by eight state assemblies including Assam, Bihar, Chhattisgarh, Jharkhand, Himachal Pradesh, Gujarat, Delhi and Madhya Pradesh. The government is of the view that once half of the state legislatures approve the new national sales tax regime, the GST Council - comprising Union finance minister and state finance ministers, can immediately sit down to approve the tax rate, slabs and exemptions for it to be incorporated in the CGST.

Parliament nod to the legislations in the Winter Session would give enough time to prepare for the rollout of GST from April 1, 2017. Government is of the view that an early Winter Session will also be beneficial as the Budget Session is planned to be convened in the last week of January.