GST rollout on July 1; two slabs for lottery, hotel rooms

Builders urge govt for abatement of land value in GST to avoid rise in home prices

Northeastern Industry Body Seeks Clarity on GST

"From September, strict adherence to time will go on", Finance Minister Arun Jaitley said after the seventeenth GST Council meeting.

More than 6.5 million businesses have already signed up for the GST, Mr Jaitley said, more than four-fifths of those already registered to pay India's old business taxes.

The Confederation of All India Traders (CAIT) welcomed the relaxation in filing returns under GST for July and August. Such details can be filed up to September 5 for July and September 20 for August.

Speaking to reporters after the GST Council meeting, Kerala finance minister Isaac Thomas said the "GST network is not fully prepared. If somebody still says he is not ready, it would be to his own detriment".

The relaxation in filing of returns until September will mean no late fees or penalties.

"The Council approved draft rules relating to advance rulings, appeals and revision, assessment, anti-profiteering and fund settlement".

A standing committee of nine members, consisting of state, central and GST Council officials, will examine complaints that will be passed on to the Director General Safeguards for investigation. The authority is likely to have a sunset date of two years. There will be further deliberation. The GST Council will meet again on 30th June on the eve of the launch.

Jaitley expressed confidence that GST laws from all pending states shall be in place by the end of next week.

It has also said that builders are expected to pass on the benefits of lower tax burden under the GST regime to the buyers of property by way of reduced prices or lower installments.

The registration, which closed on June 15, will reopen on June 25 and process has been going on "satisfactorily". "I hope we are not compelled to use it (anti-profiteering)", Jaitley said.

"Although they have a competing solution, the reason we have made a decision to go together is because, jointly, we have a more compelling reason to work together", said Athalye.

"Businesses should not rush for migration". New businesses too need not rush. They will not have to wait for final GSTIN to come. "Council decided categorically it will be implemented from 1st July onwards".

However, Uttarakhand will have it at Rs 75 lakh.

The Council also decided the threshold limit for the composition scheme for special category states.

This applies to the proposed e-way bill procedures too. Maharashtra has the big cities of Pune and Mumbai, Karnataka has Bangalore as a service tax hub, and Tamil Nadu has Chennai, so they will be able to neutralise the effect. He found support from his Jammu and Kashmir counterpart.

It also decided that hotel rooms costing more than Rs 7,500 a night will be taxed at 28 per cent under GST; rooms with tariffs in the range of Rs 2,500-Rs 7,500 a night will be taxed at 18 per cent.

The council fixed two GS T rates for lotteries-12 percent for government and 28 percent for authorised private draws.

GST also represents an unprecedented exercise in fiscal federalism.

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