Industry and Consumers both are equally excited and worried about the implementation of GST Bill. Worry is majorly due to the rate fixation and excitement is to see the simplification of indirect tax laws.
The Indian Parliament passed 122nd Amendment Bill, 2014 of GST in the month of August. Does this mean that GST is ready to be implemented? Answer is NO.
What more was needed to be done?
In order to constitute GST Council and decide on rates and further procedures, minimum 15 state legislatures were supposed to ratify the bill in their respective state assemblies.
Countdown of 15
Countdown began on 12 August with first state being Assam and others as follow:
BIHAR 16 AUG
JHARKHAND 17 AUG
HIMACHAL PRADESH 22 AUG
CHHATISGARH 22 AUG
GUJARAT 23 AUG.
MADHYA PRADESH 24 AUG
DELHI 24 AUG
NAGALAND 26 AUG
MAHARASHTRA 29 AUG
HARYANA 29 AUG
TELANGANA 30 AUG
MIZORAM 30 AUG
SIKKIM 30 AUG
GOA 31 AUG
Now the bill will be sent for President’s assent. Once the assent is obtained, the bill can be notified in the official Gazette of India.
What’s next on GST?
- GST Council will be formed post Cabinet’s Approval
- Model GST Law will be recommended by the GST Council.
- Cabinet will review and approve CGST and IGST drafts and SGST will be approved by all the states.
- The bills approved by respective cabinets will then be given passage in the winter session of Parliament and respective state assemblies.
- Rules of GST will then be notified.
Many stakeholders are of the belief that the implementation target date of April 2017 is impossible to achieve as a lot needs to be done. But with the pace how things have moved in August, it looks like Indian Government is trying hard to make it possible.