GST Council to discuss control, model laws today

Mumbai: The government’s note ban does not seem to have gone down well with some states particularly West Bengal and Kerala that have expressed doubts over roll out of the indirect tax regime the Goods and Services Tax from April 1 next year given the post-demonetisation situation in country.

The powerful GST Council that had postponed its November meeting will discuss model GST laws — the central GST law, state GST laws, integrated GST and a law pertaining to compensation to the states for loss of revenue — at its meeting scheduled later on Friday.

West Bengal Finance Minister Amit Mitra in an interview to NDTV on Wednesday said that the timing of the implementation of the GST was not right given the situation that has emerged in the aftermath of demonetisation.

“We must do GST, but do it at a time when it is feasible, successful, when states’ revenues do not decline significantly, Centre is able to compensate the states and federal polity of India is preserved. I do not see that at this time,” Mitra told NDTV.

Kerala Finance Minister Thomas Isaac harbours the same views as of Mitra’s on implementation of GST from April 1, 2017.

However, Finance Minister Arun Jaitley at HT summit on Friday morning said that Constitution does not permit delay in implementation of GST.

Apart from that, the states and the Centre have so far failed to arrive at a consensus on the contentious issue of sharing of control for levying the indirect tax which according to the government would be a game changer for Indian economy.