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GST Council meet from tomorrow to fix rates on goods, services


The Jammu and Kashmir government is holding a special session of the Assembly to debate its proposed law on GST to "protect" the state's constitutional position on taxing services.

Jaitley is hopeful that the GST Council will be able to reach a consensus to finalise the list of exempted items on Friday, including tax rate of gold and bidi. France was the first country to implement the GST in 1954.

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Holding of the meeting in Srinagar is not just the Centre's initiative but numerous states too had demanded way back in February that the Council should meet in Jammu and Kashmir when it decides the tax rates, official sources said.

"The GST will bring about comprehensive reform of the indirect tax regime in the country and a major financial reform to make India a single market", Patnaik said while addressing the legislators in the workshop on GST held ahead of the Odisha Assembly's special session on Thursday. Coal would attract a GST of 5 per cent, as compared to the existing tax rate of 11.69 per cent.

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Telcos, according to the group, have already initiated the registration process involving migration to the GST regime while a clarity, according to it is still needed on certain aspects and GST deployment is highly dependent on IT compatibility and requires sufficient time.

The tax rates will be decided in a fashion to keep their impact on inflation as well as revenues to the government near neutral. On top of that there are over 60 services, like religious pilgrimage, healthcare, education, skill development, journalistic activities, which are exempt from service tax.

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"There has been a lot of concern raised regarding the GST rules and whether vendors will be ready by July 1", Neeraj Prasad, Additional Commissioner, GST Cell, Central Board of Excise and Customs (CBEC) said on Wednesday.

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