Mr Sumit Dutt Majumder, Chairman, Central Board of Excise and Customs (CBEC), said that Goods and Services Tax may be rolled out in June or July 2012. The roll out was originally scheduled in April 2012. Unlike Direct Taxes Code (DTC), GST was a transaction-based tax and so it could be implemented even mid-way during the financial year, he said. “The implementation of GST calls for Constitutional amendment and the Bill has been referred to the standing committee on finance. I do not know how long it will take (for the Bill to be converted into an Act). Even if GST cannot be rolled out in April 2012, we can have it (roll out) by June or July 2012,” he said, while speaking at an interactive session organised by the Bengal Chamber of Commerce and Industry here on Tuesday. The Standing Committee on Finance would consult all the stakeholders (the Centre, the 30-odd States and the industry) to seek their recommendations, after which it could take the shape of an Act. Earlier during the day, while addressing the members of Bharat Chamber of Commerce, Mr Majumder said, “Once the constitutional amendments are in place, then the Centre and the States can place the respective GST Bills in Parliament as well as the Assembly. Keeping that in mind I feel that April 1, may not be possible.” The GST would subsume most of the indirect taxes, except a few items such as petroleum products and alcohol. This apart, there were discussions on natural gas being kept out of the purview of GST, though no final decision has been taken, he said.
Assessee base
The tax rates under the proposed GST regime could be between 16-20 per cent. “Internationally, the GST rates vary between 16-20 per cent and it is generally never over 20 per cent. The rates could be similar here but it will depend on the assessee base,” he said. GST implementation would broaden the assessee base by five-six times. “If the assessee base is large, then the tax rate will be less and vice versa,” he said. A strong information technology (IT) system was essential for ushering in GST. “A special purpose vehicle called GST Net has been set up to ensure coordination between the Centre, States and all the stakeholders. NSDL will be the technology partner,” he said. A dispute settlement authority has also been created for settling differences over GST between the Centre and States, he said. - www.thehindubusinessline.com
CAclubindia
