Tax Experts react to GST Council announcements on June 3

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The GST Council on Saturday, i.e. June 3, announced the GST rates for 26 Chapters with a new 3% tax rate for gold & precious stones and jewellery thereof. Significant progress was also made with finalization of Returns Rules & formats, as well as Transition Rules, thus reiterating the rollout from July 1. A Committee to entertain complaints relating to anti-profiteering would also be set up, consisting of Central & State officers. The Council would meet next on June 11, to deliberate on the pending GST Rules such as Accounts & Records, e-Way Bills, Advance Ruling, Assessment & Audit.
Tax Experts react to GST Council announcements on June 3


Rajeev Dimri
BMR & Associates LLP

GST Council meeting concluded today with reinforcement of implementation of the reformative indirect tax regime from July 1, 2017. Significant progress made with key GST rules on transition and returns being finalized, along with return formats. Although formats require detailed analysis for determining overall impact, it appears that these have been simplified to ease compliances for taxpayers. Final rates would be notified under the statute subsequently, but fitment of goods under GST tax slabs were announced across items like textile, garments, footwear, gold, packaged food items etc. It has been confirmed that a committee would be set-up for monitoring the anti-profiteering element, detailed rules on these aspects may also emerge later.

With assurance from state finance ministers and the GSTN on the readiness of implementing GST ready from July 1, onus now lies on the industry to prepare. Adequate information is now available in the public domain vis-à-vis return formats and rules, thus it is critical for the industry to gear up their IT systems for meeting reporting requirements for filing returns on the GSTN portal. Although there is no update regarding increase of deemed credit from 40 percent, planning business transition to GST with the help of transition rules should now be on the agenda for all businesses.