History of GST, Historical Background of GST, Status of GST Law 2017

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History of GST, Historical Background of GST (Goods and Service Tax). Check Status of GST Law 2017, GST Journey so far. GST History in India, France is the first country in the world, which has implemented GST in 1954. In India Finance Ministry has placed 122ndConstitution Amendment Bill in Lok Sabha in 19th December, 2014. The Government of India has appointed various committees , task force to give their views to introduce a vibrant and modern Indirect Tax Structure in India, some of views are ;

The long-awaited GST regime is all set to roll out with the President assent to the following four GST related Bills :

  • Central GST Bill, 2017
  • The Integrated GST Bill, 2017
  • Union Territory GST Bill, 2017
  • GST (Compensation to States) Bill, 2017

The law will replace various indirect taxes with one simple tax, creating a boundary less and a unified national market that will also lead to increase in country’s GDP. Implementation of GST would bring many professionals opportunities for Company Secretaries in Practice and employment in terms of compliance, advisory, tax planning, etc

The comprehensive tax structure passed through various stages before being implemented

Time of Supply of Goods

 

History of GST, Historical Background of GST

  1. Amaresh Baghchi Report, 1994 suggests that the introduction of “ Value Added Tax (VAT) ‘ will act as root for implementation of Goods and Services Tax in India
  1. Ashim Dasgupta, 2000 empowered committee, which introduces VAT System in 2005, which has replaced old age taxation system in India.
  1. Vijay Kelkar Task Force 2004, it strongly recommended that the integration of indirect taxes into the form of GST in India. 
  1. Announcement of GST to be implemented by 1st April, 2010 after successfully implementation of VAT system in India and suggestion of various committees and task forces on GST, the Union Government first time in Union Budget 2006-07 announced that the GST would be applicable from 1st April, 2010.
  1. The government has formed various Joint Working Groups of state finance ministers to study the impact of GST on the revenue of various States.
  1. The empowered committees of State Finance Ministers after various meetings reached on amicable formula for implementation of GST in India. 
  1. Task force of Finance Ministers has submitted their report in December, 2009 on structure of GST in India.
  1. Government of India has issued first discussion paper in November, 2009.
  1. Constitution (115th Amendment) Bill introduced on 22nd March, 2011 and same was referred to Parliamentary Standing Committee on Finance for discussion.
  1. Finance Minister in his speech announced that the GST will be rolled out by April, 2011. 
  2. In August, 2013 Standing Committee on Finance tabled its Report on GST Bill
  3. In December, 2014 revised Constitution Amendment Bill was tabled in Parliament
  1. Constitution (122nd Amendment) Bill introduced in the Parliament in December, 2014; since 115th Amendment Bill has been lapsed due completion of parliamentary terms. The Government of India has introduced Constitution (122nd Amendment) Bill on 19th December, 2014 the Lok Sabha has passed the bill on 6th May, 2015 but Bill is pending in Rajya Sabha.
  2. On June 14, 2016, the Ministry of Finance released draft Model law on GST in public domain for views and suggestions.
  1. GST Bill Passed in Rajya Sabha on 3rd August 2016 (03-08-2016) On August 03, 2016, the Constitution (122nd Amendment) Bill, 2014 was passed by Rajya Sabha with certain amendments.
    • The changes made by Rajya Sabha were unanimously passed by Lok Sabha.
    • After the passage of the Amendment Bill in the Rajya Sabha and the changes subsequently ratified and passed by the Lok Sabha unanimously, the Bill was adopted by a majority of State Legislatures wherein approval by at least 50% of the State Assemblies was required.
    • The final step to the Constitution (122nd) Amendment Bill, 2014 becoming an Act was taken when the Hon’ble President of India gave his final assent on September 8, 2016.
    • The Constitutional 101st Amendment Act came into force which empowers both the States and Centre to levy this tax.
  2. In 2017 – Four GST related Bills become Act following Presidents assent & passage in Parliament:
    • Central GST Bill
    • Integrated GST Bill
    • Union Territory GST Bill
    • GST (Compensation to States) Bill
  3. In 2017 – GST Council finalizing the GST Rules and GST Rates
  4. When GST is Applicable – Modi Government Want to applicable GST Bill From 1st July 2017, Due to Some Legal Problems GST Bill is not applicable before 1st July 2017.

Status of GST Law 2017

The following laws have been passed by the Parliament followed by President’s assent :

Law Status
Central GST Bill, 2017 Passed by Parliament followed by Hon’ble President’s assent
Integrated GST Bill 2017 Passed by Parliament followed by Hon’ble President’s assent
Union Territory-GST Bill, 2017 Passed by Parliament followed by Hon’ble President’s assent
GST (Compensation to States) Passed by Parliament followed by Hon’ble President’s assent
State GST Bill, 2017 To be passed in respective State Assemblies

The 14th meeting of GST Council shall be held on 18-19 May, 2017 to finalize the fitment of commodities in the four- tier rate structure and to finalise draft rules. CBEC has issued total 11 GST rules as follows, which are available in the public domain on CBEC website :

  • (i) GST Composition Rules
  • (ii) GST Valuation Rules
  • (iii) GST Transition Rules
  • (iv) GST ITC Rules
  • (v) GST Revised Invoice Rules
  • (vi) GST Revised Payment Rules
  • (vii) GST Revised Refund Rules
  • (viii) GST Revised Registration Rules
  • (ix) GST Revised Return Rules
  • (x) GST Assessment and Audit Rules
  • (xi) GST Electronic Way Bill Rules

Check also:

Section 14 of IGST – Special provision for payment of tax…

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