The Cabinet on Monday cleared the process, formation and functioning of the Goods and Services Tax (GST) Council, which will decide on the rate of tax under the new indirect taxation regime.
The Council, which will be headed by Finance Minister Arun Jaitley and comprise of representative of all 29 states and two union territories, will have to be set up by November 11. The state governments will have the discretion to nominate any one minister to the GST Council.
It will decide on the tax rate, exemptions and threshold limits in the new indirect tax regime, which is expected to roll out from April 1, 2017.
The government has notified September 12, as the date from which the procedure for setting up of the GST Council will be initiated and which will be completed within 60 days.
Following the notification, Revenue Secretary Hasmukh Adhia said the government was ahead of the time schedule on the implementation of GST.
“So far we are ahead of the time schedule of GST. The main thing to be done is now call as many meeting of GST Council and sort out all issues, so that we can be ready with the draft of the GST Bill,” Adhia told reporters.
“As far as administrative requirements are concerned, we are fully geared. We are monitoring IT preparedness of states, we are on track. We are all geared up for the April 1, 2017 deadline,” he added.
Chairman Central Board of Excise and Customs (CBEC) will be a permanent but non-voting invitee to the GST Council and will help the council in taking decisions, he said.
“All discussions on GST will take place in the constitutional body. This is the main body which will take all major decision, including on the GST rate,” he said.Back to latest news