Revised Draft GST Law
The Ministry of Finance has released draft of Model GST Law (Revised) along with Draft of IGST Law and State’s GST Compensation Bill for consideration of GST Council in its next meeting scheduled on 2-3 Dec. 2016, as under:
A1. Revised Draft Model GST Law dt. 26 Nov. 2016
After due deliberations and also after taking into consideration comments/ suggestions from various stakeholders and professional bodies like ICAI/ ICSI, the GOI has released revised draft of the Model GST Law on 26 Nov. 2016 for discussions and consideration in the forthcoming GST Council meeting scheduled to be held on 2-3 Dec. 2016, as under:
Revised draft GST law has introduced certain new provisions, like concept of ‘anti-profiteering’ for sharing benefit of lower taxes with customers, mechanism for credit of excise duty on goods lying with distribution chain, concept of ‘composite supply’ and ‘mixed supply’, etc. Besides, Govt. has made amendments in the previous draft GST law, like proposal to consider intangibles as services is removed, etc. It seems that Govt. has considered most of the suggestions forwarded by the trade and industry.
A2. Draft IGST Law dt. 26 Nov. 2016
GOI has released draft IGST Law pertaining to Inter State supply of Goods and Services, as under:
A3. Draft GST Compensation Law dt. 26 Nov. 2016
Further, GOI has released Draft GST Compensation Law, a Bill to provide for compensation to the States for loss of revenue arising on account of implementation of the GST for a period of 5 years, as under:
A4. GOI Press Release dt. 26 Nov. 2016
The Draft Model GST Law, Draft IGST Law and Draft Compensation Law which would be considered by the GST Council for approval are placed in the public domain for information of trade, industry and other stake holders. The Draft Model Laws can be accessed at the following websites: www.cbec.gov.in,www.dor.gov.in and www.gst.gov.in
Earlier, the Draft Model GST Law was put in public domain in the month of June, 2016 for comments. A large number of comments were received on the Draft Model GST Law from various stake holders including the trade and industry associations and public.
A Technical Committee of officers from some of the States and the Central Government was constituted to examine the inputs from the stake holders and make suitable amendments in the Draft Model GST Law. The Revised Draft submitted by this Technical Committee on law was further discussed in a meeting held on 21stand 22nd of November, 2016 in Delhi where officers from all States and Central Government were present. The revised and improved version of this Model GST laws shall now be considered by the GST Council for approval on 2nd and 3rd of December, 2016.
B. Draft Model GST Law dt. 15 June 2016
The GoI has once again stressed on the pending indirect taxation reforms process, i.e. introducing GST, and has accordingly released the draft GST law. The model GST law contains two parts the Goods and Services Tax Act, 2016 and the Integrated Goods and Services Tax Act, 2016 which provides the framework for implementation of GST in India most likely with effect from April 1, 2017.
All stakeholders have been requested to give their suggestions/ comments to secretariat of Empowered Committee of State FMs and / or to the Finance Ministry.