Changeover to GST: Nobody has luxury of time, says Jaitley

Dated 17th December, 2016

Sending a message to states to quickly resolve contentious issues around GST, Finance Minister Arun Jaitley on Saturday reminded them that the current system of taxation (excise, customs and service tax) would expire on September 16, 2017.

The Constitutional Amendment to enable GST introduction had given only a one-year window for existing models of taxation to continue, Jaitley said at the 89th Annual General Meeting of the Federation of Indian Chambers of Commerce and Industry (FICCI) in the Capital.

With the Constitutional amendment happening on September 16 this year, the Centre and the states have time until September 16, 2017, to get the necessary legislative changes effected for GST implementation.

"Nobody has luxury of time", Jaitley noted, while urging the states to come on board.

Jaitley said the range of time available for putting the legal framework in place will be April 1-September 16, 2017.

At least three Bills -- Central GST, iGST and State GST -- have to be enacted into law. The main contentious issue around GST introduction is the "dual control" aspect as regards assessment.

On demonetisation, Jaitley said there would only be long-term benefits for the country although there is short-term pain.

(This article is published in The Hindu Business Lines on 17 December 2016)