Dropping a hint about possible delay in rolling out of Goods and Services Tax (GST), Union Finance Minister Arun Jaitley on Saturday said the timeline for implementation could be between April and September next year.
According to Press Trust of India (PTI), the Finance Minister, however, said unlike income tax, GST could be rolled out at anytime during the year.
"It is a transactional tax and not an income tax. Transactional tax can start in any part of the financial year and therefore, the range of timing when it has to come into force because of constitutional necessity is April 1, 2017 to September 16, 2017," the report quoted Jaitley as saying.
He also alluded to 'certain kinds of turf issues' between the centre and the states, resolution of which would be crucial for early implementation of GST.
After the landmark Constitution amendment bill passed in Parliament in August this year, more than half the states have ratified it. Also, several important decisions have already been taken by the GST Council headed by the Finance Minister comprising state representatives.
"The GST Council has resolved 10 issues and only one pertaining to administration of tax is pending," said Jaitley, adding that these legislations would be passed in the Parliament and respective state legislatures.
Talking on the constitutional compulsion of rolling out GST by September 16 next year, the Finance Minister said post this time period, old taxation regime would be discontinued. "The entire amendment was notified on September 16, 2016, and it permits the old taxation regime to continue for a period of one year," Jaitley said.
Meantime, the Finance Minister pitched for early roll out of GST regime, ideally from April 2017 saying this would boost tax collections for both centre and the states.
GST is an indirect tax proposal and has an objective of removing multiplicity in taxation. Post implementation, the new tax regime is likely boost tax base in the country along with removal of procedural complexities.
