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Manmohan Singh said, the all-India Good and Services Tax will be in place by next year, even if it might

actually be implemented after the 2014 general elections. "I cannot say that we can deliver tomorrow but by 2014, a GST of an appropriate type will be there. We have Lok Sabha elections in 2014 and once that is over, it should be implemented because there is general consensus on it,"

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Samajwadi Party opposes proposed GST law

PTI Aug 11, 2013, 01.47PM IST

(Samajwadi Party, which)

NEW DELHI: Samajwadi Party, which supports the UPA government from outside, has opposed the indirect tax regime GST and said Uttar Pradesh has reservation over the new legislation as it will infringe upon sovereignty of states. Naresh Agrawal, SP member in the Parliamentary Standing Committee on Finance, has given a note of dissent in the report submitted by the panel in Parliament last week to register the objections of his party and the state government ruled by it.
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The Standing Committee on Finance is sending its report on GST to Government. Whereas Prime Minister and Finance minister are continuously giving statements that Union government is reconsidering over this, I have objected but you were adamant on sending your report," Agrawal has said in the dissent note addressed to panel's Chairman Yashwant Sinha. "I am sending my objections as well as of Uttar Pradesh government," he has said. The Constitution (115th Amendment) Bill, 2011 relating to Goods and Services Tax (GST) was referred to the Standing Committee in March, 2011 for detailed examination. Raising objections on various counts on the proposed legislation that is intended to overhaul the indirect tax regime, the SP member has said, "Uttar Pradesh Government is totally against GST because due to this, Union Government will have direct interference in State Governments' head, which will be direct interference in sovereignty of States." He wanted to know how the central government will compensate the states in the next five years of the financial loss suffered by them due to implementation of GST. Sinha, while submitting the report, had noted that the Committee have decided to pronounce its views on the Bill and fulfill its mandate, so that it is "not blamed for stalling the Bill". Agrawal also raised the issue of compensating Municipal Corporation, Municipality, Town Area, Zila Prishad, which impose taxes at local levels. The SP said initially huge resources are needed for GST collection and wanted to know how the union government would provide assistance to the states for this purpose. The party also has questions over how the taxes collected by the Centre through GST will be allocated to the states and what would be its time limit. The GST Bill introduced in Lok Sabha in August 2010 seeks to subsume most of the indirect taxes. Under the GST regime, both the Centre and the State would have the powers to tax the "supply" of goods and services right from their primary stage to final consumption.


Update 19th july 2013

Parliamentary panel finalises GST report

The Parliamentary Standing Committee on Finance on Friday finalised its report on Goods and Services Tax (GST) which will be tabled in Parliament in the monsoon session beginning August 5. The Committee has adopted and finalised the report on GST. It will be sent to the Parliament on Friday only. It will be tabl ed in Lok Sabha in the Monsoon session, a source said. The GST Bill, introduced in Parliament in 2010, is being vetted by the Standing Committee on Finance. Now, the states and the Centre would together finalise the draft and bring it back to Parliament. The proposed GST is aimed at bringing in a common tax regime for goods and services by subsuming most indirect taxes. It is also expected that GST will help increase revenue collections. The GST roll-out has missed several deadlines due to differences between the states and the Centre over contentious issue of central sales tax, compensation to states and design of GST structure. Union Finance Minister P. Chidambaram had recently said that the Empowered Committee of State Finance Ministers is working hard on the GST and by and large all of them are very supportive. The Constitution Amendment Bill is being drafted. It is being placed before the Council of Ministers (on July 22). Then the GST Bill is to be drafted. It will be placed before them. The two would be placed in Parliament after they are ready . The Minister had said that one or two state governments were opposing GST. According to sources, the panel has suggested that the government look into the issue of revenue loss due to implementation of GST regime in case of higher resource mobilising states. He further said the panel has suggested that the Centre should prepare a framework for the GST regime in which the revenue generating states should be adequately compensated. The gas pricing issue also came up before the panel but it deferred the matter for the next meeting scheduled on July 26. According to sources, Deepender Hooda and Sanjay Nirupam said the issue of gas prices should be taken up for discussion by the Committee on Petroleum and Natural Gas and not by the Finance panel. However, majority of members rejected their view saying all issues which have revenue implication should be taken up by panel for deliberations.

Panel proposals to delay GST rollout

New Delhi, Aug. 7: The implementation of the goods and services tax (GST) could get delayed further with the parliamentary standing committee today suggesting amendments to provisions in the bill relating to the tax structure and the dispute resolution mechanism. The committee, headed by former finance minister Yashwant Sinha, said the constitutional amendment bill should not include specific aspects relating to tax rates, exemptions, exclusions, thresholds and administrative arrangements. It also wants the entry tax to be subsumed in GST. Like the European model, there could be a floor rate and a ceiling rate within which the states will have the freedom to hav e a high or low rate, the panel said. States should be allowed the choice to enter into GST just like it was provided in the value-added tax (VAT), it added. The committee also pitched for suitable amendments to provide for an automatic compensation mechanism through the setting up of a GST compensation fund, which would be administered by the GST council. It is expected to address revenue concerns of states. The creation of a monitoring cell has been proposed to oversee the impact on key aspects such as growth, inflation, hoarding and compliance cost for tax payers and the price of end products.

On the GST dispute settlement authority, the committee suggested that the proposal should be omitted and the GST council be empowered to deal with differences among stake holders. GST bill, which was introduced in Parliament in 2010, was vetted by the standing committee on finance. Following the submission of its report, the states and the Centre will finalise the draft and bring it back to Parliament. The GST is aimed at bringing in a common tax regime for goods and services by subsuming most indirect taxes. It is also expected to increase revenue collections. Finance minister P. Chidambaram had recently said, The empowered committee of state finance ministers is working hard on the GST and by and large all of them are very supportive. GST rollout has missed several deadlines on account of differences over the contentious issue of central sales tax compensation and design of the GST structure between the states and the Centre.