GST Council | Goods & Services Tax Council | Indian GST CouncilWhether GST Will Be a Reality from 1st April, 2017?

GST Council Meeting 

The GST Council met for 5th time on 2nd & 3rd December ,2016 . But, the meeting remained inconclusive. Since, the bone of contention of deciding upon the  jurisdictional control of assessee remained at limbo.

The inconclusive meetings which ran  over two days could evolve only one fact that the States are still reluctant to do away with such rights so easily.

Therefore,the next meeting of GST Council was again fixed for 11th&12th December 2016.

What Resulted A No Result Meeting in GST Council ?

Demonetisation is seen as one of the biggest reason for no conlusion in the 5th meeting of GST Council.

The other reason been the adamency of State Governments to loose their control on the assessees having turnover upto Rs 1.5 crores.

Futher, States have also some where in back of their mind that they had already accepted an additional levy of Cess above the levy of GST on luxury /demierit/sin goods. Wheeras, the States initiated resisted this levy at the first instance. Therefore, they can take plea that again they cannot be insisted for agreeing upon such a demand where control by State’s  is at stake.

What is Expected in Next GST Council Meeting ?

At present, the Chief Minister of TamilNadu is very critical and if something goes wrong, then the meeting of GST Council may be further postponed.This will further impact the working in Parliament.

Further,the demonetisation factor is to last for atleast  another 20 days.Moreover,the agenda of every political parties is revolving around demonetisatoin.Therefore, at this juncture, there will be hardly any political will to support any issue of GST.

Aboveall, States have their weighty presence in GST Council. Hence, it will be a behind the scene obstruction for every new decision in upcoming GST Council meetings.

Hence, the timing of GST meeting is not proper to have a conclusion on such a senstitive issue of administration where the mind of States are already known even to the Centre.

Whether GST Will Be A Reality from 1st April 2017 ?

It is a fact looking to be truth that the winter session of the Parliament may not see the passage of GST law.

But, the Centre is destined to bring the GST  as Money Bill. Since, Article 110 provides immunity where the speaker agrees to allow any bill as Money Bill.

It is pertinent to note that the Congress had already faced the bitterness in Supreme Court when it challnged the passage of Aadhar Bill.Therefore, both the opposition as well the Centre knows about the impact of Money Bill .

The another demand which has surfaced again and again was a cap of GST rate. This has been already addressed in the revised draft GST Act,2016.

Conclusion

Under the aforesaid given facts and developments , it seems that though GST will be a reality in 2017 but the date of implementation may be deferred to June-July 2017. 

It should be also understood that GST Council is already constituted and hence, there can be time being delay only but under any circumstances, GST will be a reality in 2017.

It must be also known that the validity of GST Bill is upto September 2017 and hence the deadline to implement the GST in India is September 2017 . 

But, there are varius options avaible with the Centre to call a mid session of  Parliament to implement GST from 1st April,2017 even if winter session fails for GST Bill.

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