The government has issued notification for the implementation of Central Goods and Service Tax (CGST) regime from 1st July and clarified that the new indirect taxation regime is absolutely correct. Union Finance Minister Arun Jaitley said on Wednesday, “I don’t see much of a problem. Small issues will always arise whenever you make a change of any kind. But I am sure the system is fully geared up and the system will eventually smoothen itself out,”
Union Finance Minister Arun Jaitley said that “It the date has not been decided by the Centre. And more importantly, there is a constitutional mandate and that mandate is that on 16th of September, you will lose the right to collect existing taxes. So the alternate system has to come into place. Those who are talking in terms of deferring GST by six months and so on, that’s a constitutionally impermissible thing,”
“We have spent so much time in building consensus and fortunately, we were able to build consensus. Therefore that spirit of consensus should be maintained by all. Even the function we are organising symbolises that larger national consensus,” he said.
Trinamool party and several other opposition parties have refused to attend the midnight launch event of 30th June. States will be informed their respective GST Acts along with other provisions and it also includes roll- out date.
A limit of Rs 5000 per day has been informed by the Central Government in the case of purchasing from unregistered vendors shall be taxable in reverse charge, which provides some relaxation in complicated taxation structure for small and petty expenses.
A simple summary format initially for the first two months has been officially announced (GSTR- 3B) in the last GST Council Meeting. A registered person whose annual turnover is up to Rs 1.5 crore in the previous financial year will not be needed to mention the digits.
Businesses whose turnover lies in between Rs 1.5 crore and Rs 2 crore will be required to mention two digits whereas whom turnover above Rs 5 crore will be required to mention four digits.
The Central Government has informed several rates as penalties: 18 percent in the case of delayed payments, 24 percent in case of excess claim for input tax credit or surplus reduction in output liability, 6 percent in case of withheld refund and 9 percent in case delayed refund after an order of adjudicating authority of appellate tribunal.
For smooth transition in GST, the government is making efforts to adopt the easier process for exporters. “The new procedures will be in line with the GST,” a government official told ET. Customs has already started testing new forms of its systems. The Central Board of Excise and Customs (CBEC) has framed a set of guidelines or rules for importers and exporters to help them transition to GST changes in new regime to provide relaxation to small vendors.
