Govt gets 40,000 suggestions on Model GST Law
The Model GST Law, released in June this year, provides the basic understanding of how the new law would look like and how it would be administered.
- Aug 10, 2016,
- Updated Aug 10, 2016 5:18 PM IST
The ministry of finance has received more than 40,000 suggestions on the Model GST Law, BN Sharma, additional secretary, department of revenue, said in a conference organised on the occasion of Indian Cost Accounts Service Day on Tuesday evening. Sharma said they do not yet know about the nature of the suggestions and the areas of concern, but said some of the suggestions may be similar in nature. He also said the decision on suggestions would be taken in consultation with States. The Model GST Law, released in June this year, provides the basic understanding of how the new law would look like and how it would be administered. Though the final shape of the law would be decided by the GST Council, which comprise representatives of states and centre, but the model law is open for suggestions from stakeholders. The model law is riddled with flaws and anomalies and the number of suggestions received by the finance ministry points to worries about the final shape of the law. Some of the main concerns include increase in compliance burden for services companies like banks and financial institutions, dual administration (by states and the centre), availability of input credits only on a matching concept basis and taxation of supplies even without consideration. On the issue of dual control, speaking on the occasion, Najib Shah, chairman, Central Board of Excise and Customs said that the efforts would be to ultimately have a single control. However, he did not elaborate how the government plans to do this.
The ministry of finance has received more than 40,000 suggestions on the Model GST Law, BN Sharma, additional secretary, department of revenue, said in a conference organised on the occasion of Indian Cost Accounts Service Day on Tuesday evening. Sharma said they do not yet know about the nature of the suggestions and the areas of concern, but said some of the suggestions may be similar in nature. He also said the decision on suggestions would be taken in consultation with States. The Model GST Law, released in June this year, provides the basic understanding of how the new law would look like and how it would be administered. Though the final shape of the law would be decided by the GST Council, which comprise representatives of states and centre, but the model law is open for suggestions from stakeholders. The model law is riddled with flaws and anomalies and the number of suggestions received by the finance ministry points to worries about the final shape of the law. Some of the main concerns include increase in compliance burden for services companies like banks and financial institutions, dual administration (by states and the centre), availability of input credits only on a matching concept basis and taxation of supplies even without consideration. On the issue of dual control, speaking on the occasion, Najib Shah, chairman, Central Board of Excise and Customs said that the efforts would be to ultimately have a single control. However, he did not elaborate how the government plans to do this.