Lok Sabha Question No. 1800 (UNSTARRED), answered on 2017-03-10
Subject: GST
Ministry: FINANCE
Asked by: RAJESH KUMAR DIWAKAR, ANTO  ANTONY, KOTHA PRABHAKAR REDDY, E. T. MOHAMMED BASHEER, AJAY (TENI) MISRA, P. KUMAR, KIRIT PREMJIBHAI SOLANKI

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA UNSTARRED QUESTION NO. 1800

TO BE ANSWERED ON FRIDAY, THE 10 TH  MARCH, 2017

19 Phalguna, 1938 (SAKA)

## GST

## 1800: SHRI RAJESH KUMAR DIWAKER:

SHRI ANTO ANTONY:

SHRI PRABHAKAR REDDY KOTHA:

SHRI E.T. MOHAMMED BASHEER:

SHRI AJAY MISRA TENI:

SHRI P. KUMAR:

DR. KIRIT P. SOLANKI:

## Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has set forth any new timeframe for the implementation of Goods and Services Tax (GST) in the country;
- (b) if  so,  the  details  thereof  and  the  reasons  thereof  along  with  the  steps  being  taken  by  the Government in this regard;
- (c) whether the deadlock in the implementation of GST is due to non-consideration of views and proposals of the  States in  regard  to  revenue  loss  collection  of  inter-State  taxes,  port  trade, etc.;
- (d) if so, the details thereof along with the existing taxes to be abolished upon implementation of GST;
- (e) the details of long term benefits expected by GST in the country; and
- (f) the  effective  steps  taken/being  taken    by  the  Government  to  sort  out  those  issues  and  for speedy implementation of GST?

## ANSWER

## MINISTER OF STATE IN MINISTRY OF FINANCE (SHRI SANTOSH KUMAR GANGWAR)

(a) & (b) The GST Council in its 9th Meeting held on 16 January 2017 took note of the work to be completed for the rollout of GST and after deliberations, agreed to extend the date for rollout of GST from 1st April 2017 to 1st July 2017. Steps taken to ensure rollout of GST by 1st July 2017 include approval of the Draft GST Compensation Law by the GST Council in its 10th Meeting on 18 February 2017 held in Udaipur, Rajasthan. Subsequently, the Draft CGST Law and Draft IGST Law were approved in the 11th Council Meeting held on 4 March 2017 at New Delhi. The issues of dual control and cross empowerment were resolved in the 9th Meeting of the GST Council held on 16 January 2017 in which a broad agreement was reached on the issue of cross-empowerment to achieve single interface of taxpayer with the tax administration in the GST regime.

- (c) All the decisions taken by the GST Council so far have been based on consensus among the Centre and the States. So, the question does not arise.
- (d) At the Central level , the following taxes are being subsumed in GST:
- a.  Central Excise Duty,
- b.  Additional Excise Duty,
- c.  Service Tax,
- d.  Additional Customs Duty commonly known as Countervailing  Duty, and
- e.  Special Additional Duty of Customs.
- f.  Cesses and surcharges (Except Clean Energy Cess)

At the State level , the following taxes are being subsumed in GST:

- a.  State Value Added Tax/Sales Tax,
- b.  Central  Sales  Tax  (levied  by  the  Centre  and  collected  by  the States),
- c.  Entertainment Tax (other than the tax levied by the local bodies),
- d.  Octroi and Entry tax,
- e.  Purchase Tax,
- f.  Luxury tax, and
- g. Taxes on lottery, betting and gambling.
- h.   State cesses and surcharges in so far as they relate to supply of goods and services.
9. (e) GST will simplify and harmonise the indirect tax regime in the country. It is expected to reduce cost of production, thereby making  the Indian trade industry more  competitive, domestically as well as internationally. It is also expected that introduction of GST will foster a common or seamless Indian market and contribute significantly to the growth of the economy. Further,  GST  will  broaden  the  tax  base,  and  result  in  better  tax  compliance  due  to  robust  IT infrastructure.
10. (f) GST Council is presently deliberating on various issues entrusted to it. All the decisions taken by the Council so far have been based on consensus. GST is going to be implemented soon in the country, therefore, simultaneous and concert efforts are also being made by the government in  the  form  of  IT  readiness,  rigorous  consultations,  workshops  and  training  sessions  for  the industry and traders, and all other stake holders involved etc.