Revenue Secretary Outlines GST Council's Upcoming Legislative Debates
This article details key discussions held by the GST Council regarding the implementation of major GST laws. It highlights clarifications on tax evasion penalties, including provisions for bailable and non-bailable arrests based on evasion amounts. The West Bengal government's objections to the arrest clause and its recommendations for changes are also noted. Additionally, the article covers the government's adherence to the July 1 GST deadline and the consistent maintenance of the four established tax slabs, encouraging businesses to commence their transition to the new tax regime.
Implementing a significant legislative framework like the Goods and Services Tax (GST) naturally encounters challenges, and addressing these intricate details falls within the purview of the Revenue Secretary. The GST has generated discussions not just concerning its proposed tax framework and its impact on businesses, but also regarding its scope of authority.
The GST Council is scheduled to finalize crucial regulations during its upcoming meeting on February 18. Initially, the GST provisions suggested severe penalties for tax defaulters. However, following extensive deliberations, it has been established that individuals evading tax up to Rs. 2 crore will not face arrest. Tax evaders owing between Rs. 2 crore and Rs. 5 crore will be subject to bailable arrest, while evasion exceeding Rs. 5 crore will constitute a non-bailable offense.
The West Bengal government expressed significant objections to the GST's arrest clause for tax evaders, labeling it "draconian," especially since existing excise and service tax laws already include similar provisions. Furthermore, the state government submitted a 16-point proposal to the Finance Ministry, suggesting amendments to various GST clauses.
Additional subjects slated for discussion at the February 18 meeting include strategies for a new financial year and the divestment of shares in the state-owned IDBI bank. Economic Affairs Secretary Shaktikant Das indicated the government's objective to secure Rs. 72,500 crore in Fiscal Year 2018 through the divestment of public sector undertakings.
Consistent Tax Slabs Maintained
Revenue Secretary Hasmukh Adhia reiterated the government's commitment to the July 1 deadline for GST implementation. He stated that the Council intends to maintain straightforward rates and calculations, with the four existing tax slabs remaining at 5 percent, 12 percent, 18 percent, and 28 percent. Given this, it is crucial for Small and Medium Enterprises (SMEs) and other businesses to promptly begin their transition to the GST framework. Recommended actions include:
- Ensure timely GST enrollment. For additional information on the enrollment process and its significance, refer to this guide.
- Diligently plan logistics and warehousing needs. A comprehensive guide on the GST's impact on logistics and warehousing is available here.
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